Hermès Shares Surge 3.6%: Kepler and HSBC Simultaneously Upgrade to Buy
Hermès International's stock significantly advanced this Tuesday midday, rising by 3.6% to 1,972.50 euros in a generally well-oriented Parisian market. This increase coincides with two favorable recommendations issued successively by Kepler Cheuvreux and HSBC. However, the luxury house still lags more than 21% over the year.
Converging Brokerage Notes Trigger Today’s Rebound
Today's rebound follows two converging brokerage notes. Kepler Cheuvreux initiated a buy recommendation on Hermès International this Tuesday, with a price target set at 2,300 euros, representing a potential upside of about 16.6% from the current price. On the other hand, HSBC upgraded its advice from 'hold' to 'buy' the previous day, while raising its target from 2,250 to 2,350 euros, which represents a nearly 19% difference from today's trading level. These two initiatives mark a significant signal for the stock, occurring as it had seen a nearly 7% decline over three months and was well below its levels from last year. The announcement of the first quarter revenue, scheduled for April 15, and the annual general meeting of shareholders planned for April 17, will be the next milestones likely to feed the news flow on the stock.
Despite Today’s Rise, Hermès Stock Remains Well Below Key Moving Averages
Despite today's rebound, Hermès' share price remains significantly below its main moving averages. The 50-day moving average stands at 2,086.15 euros and the 200-day at 2,159.85 euros, both levels indicating the bearish trajectory that has been ongoing for several months. The stock also shows an RSI at 30, typically considered an oversold zone, indicating that selling pressure has been particularly strong in recent weeks. Today's bullish movement occurs in a supportive market context: the CAC 40 is up 2.31% in the session at 8,098.45 points, while the DAX is up 2.22%. The Nikkei 225 closed up 2.88% and the Hang Seng ended with a gain of 2.17%. Hermès shares had closed the previous day at 1,904 euros, above its technical support identified at 1,890 euros, a level that has thus held. The nearest resistance lies at 2,184 euros, a threshold the stock will need to surpass to consider bridging the gap with analysts' targets.
