Hermès Shares Slide Below Moving Averages Despite €2,000 Target
Hermès International is down 1.84% this Thursday morning at €1,735.50, amid a widespread retreat in the luxury sector on the Paris stock exchange. The stock is significantly below its 50-day and 200-day moving averages, confirming a medium-term downward trend. The first quarter revenue report, expected on April 15, will be a critical test for the stock's trajectory.
Recent Analyst Recommendation Amidst Stock Decline
This Thursday's decline comes as Hermès International was recently favored in a note from CIC Market Solutions, dated April 7. The financial intermediary initiated a buy recommendation with a target price set at €2,000, representing a potential increase of about 15% from the current level. Despite this positive signal, the stock suffers this morning, in line with the entire luxury compartment: LVMH is down 3.88% and L'Oréal by 1.61%. The CAC 40 itself is down 0.72% at 8,204.70 points, in an environment of high market tensions, as evidenced by a VIX index at 25.78 on April 7. Over the past year, the stock has declined by 22.2% and has lost nearly 19% over the last three months, a trajectory that contrasts with a slight weekly rebound of 3.95% observed over the past seven days. The annual general meeting of shareholders, scheduled for April 17, will follow the quarterly publication by two days and could provide additional insights into the group's strategy.
Technical Analysis Indicates Persistent Selling Pressure
From a technical analysis perspective, Hermès' share price is currently below its 20-day (€1,741.35) and 50-day (€1,923.97) moving averages, indicating persistent selling pressure in the short and medium term. The gap with the 200-day moving average, located at €2,101.10, illustrates the magnitude of the correction over several months. The RSI is positioned at 48, in a neutral zone, without any oversold or overbought signals. Within the Bollinger Bands, the stock is almost exactly in the middle of the range (49%), between a lower bound at €1,505.63 and an upper bound at €1,977.07. The nearest technical support is at €1,609, a level that would represent a floor in case of an intensification of the downward movement. Conversely, the identified resistance at €2,080 remains more than 19% away from the current price, indicating that the path to a sustainable recovery would require a significant fundamental catalyst.
