Hermès share down 25.5% over three months and remains below its 20-day moving average
The Paris luxury goods maker is making a slight recovery during trading, within a rising CAC 40 index. This modest rebound comes after a decline that has significantly distanced the stock from its moving averages, while two research firms have recently revised their price targets.
A timid rebound that leaves the stock far from its moving averages
The Hermès share is up 0.48% to €1,265.50, while the CAC 40 rises 0.89%. The stock therefore remains in the middle of the index, far from the values leading the session.
The decline of 6.71% over one week and 25.36% over three months continues to weigh on the technical setup: the price is below the 20-day moving average (gap of 2.26%) and significantly below the 50-day moving average, at 8.45%.
The RSI at 39 reflects a weakened stock, without being in oversold territory. The support level at €1,238.50 is less than 2.2% from the current price, following the breakdown of support at €1,262.50 on October 23.
The house had moreover published on October 22 revenue of €12,260 million over nine months, with third-quarter growth of 4.3% at constant exchange rates.
Citi lowers its price target to €1,406 while maintaining a neutral view
On the analyst side, Citi lowered its price target on October 27 from €1,540 to €1,406, while maintaining its neutral rating on the stock. This target remains approximately 11% above the current price.
Comparable luxury stocks are moving without a common direction: LVMH is down 0.16% and Christian Dior is up 0.05%, while Kering is up 0.59% following a decline of more than 20% over one month.
At the publication of the first nine months, the group calculated approximately €310 million in negative currency effects on its revenue. The support level at €1,238.50 is the closest technical level to the current price.
