Hermès Shares Under Pressure: UBS and Oddo BHF Lower Their Targets
Hermès shares fell by 2.24% this Monday morning, trading at 1,702 euros, amid a significant downturn in the CAC 40, which lost 1.13% during the session. UBS and Oddo BHF have concurrently revised their price targets for the luxury house downward, fueling selling pressure on a stock that has already declined nearly 25% over the year.
Double Downgrade by Leading Analysts
This Monday, Hermès International faced a dual downgrade from leading analysts. UBS adjusted its price target from 1,820 to 1,765 euros while maintaining a neutral recommendation. Meanwhile, Oddo BHF made a more significant adjustment, lowering its target from 1,928 to 1,780 euros, also with a neutral view. These revised targets are now close to the current price, suggesting a limited upside potential estimated at 3.7% and 4.6%, respectively. The decline in Hermès is not an isolated case: LVMH fell by 2.09% and L'Oréal by 1.21% in the same session. The CAC 40 traded at 8,330 points, down by 1.13%, while the SBF 120 dropped by 1.08%. This downturn in Paris contrasts with trends observed in other markets: the DAX advanced by 2.27% during the session, and the S&P 500 closed up by 1.20%.
Technical Perspective on Hermès Shares
Technically, Hermès shares are trading well below their 50-day and 200-day moving averages, positioned at 1,877.69 euros and 2,081.28 euros, respectively. This gap indicates a bearish trend that has been established over several quarters, confirmed by a 19.45% decline over three months. However, the price has repositioned itself above its 20-day moving average (1,685.46 euros), signaling a modest technical rebound in the short term following the recent correction. The RSI at 49 places the stock in a neutral zone, with no immediate oversold or overbought signals, leaving the market without an immediate directional catalyst. The Bollinger Bands frame the stock between 1,569 euros on the lower bound and 1,801.93 euros on the upper bound: the price is at 57% of this range, in a median position that does not betray any particular excess. The next financial milestone on the calendar is the publication of the semi-annual results for 2026 scheduled for July 29, which could provide a fundamental anchor point for the coming weeks.
