Hermès: Stock Up +2.3% After a 32% Plunge Over a Year

Course Target Adjustments by Major Banks

This week features two course target adjustments for Hermès International by major banks. On March 25, JP Morgan revised its target from €2,350 to €2,250, while maintaining a neutral recommendation on the stock. Morgan Stanley, on March 23, made a more pronounced reduction, lowering its target from €2,530 to €2,280, with an unchanged market-weight stance. Despite these downward revisions, both targets remain significantly above the current price of €1,687.50, suggesting a theoretical revaluation potential of between 33% and 35% according to these institutions. These adjustments come as the company's first-quarter revenue announcement is scheduled for April 15, followed by the annual general meeting on April 17. These events could provide new elements to reassess the group's trajectory.

Technical Perspective

From a technical standpoint, the stock is substantially below its 50-day and 200-day moving averages, which are at €2,014.94 and €2,129.20, respectively. This confirms the magnitude of the recent decline. The significant gap reflects persistent selling pressure and a pronounced departure from recent average valuation zones. The RSI indicator, which measures the speed and amplitude of price movements, shows a level of 20, well below the usual oversold threshold of 30. This extreme signal may indicate a short-term overselling, though it does not guarantee an immediate reversal. Today's session sees the stock rebounding precisely from the support identified at €1,649.50, corresponding to the previous day's close, while the CAC 40 advances 1.51% in a session amid a relaxation of geopolitical tensions observed at the beginning of the week. The luxury sector is contributing to this movement: LVMH is up 1.19% and L'Oréal advances 0.89% at the same time.