Hermès stock holds firm despite two analysts lowering targets, -15% over one month
The Parisian leather goods maker is resisting the broader trend on Wednesday, posting modest gains during the session as two major banks revised their price targets downward this morning. The stock nevertheless remains under significant medium-term pressure, with a decline of over 16% in the quarter.
Morgan Stanley and JP Morgan lower price targets at the opening of trading
Two revisions of analyst opinions were published on Wednesday regarding Hermès International. Morgan Stanley lowered its target from 1,740 € to 1,500 €, while maintaining an "equal-weight" opinion. JP Morgan adjusted its target from 1,800 € to 1,600 €, with a "neutral" rating.
These two revised targets nonetheless remain significantly above the current share price of 1,356 €, representing respective implicit upside potential of approximately 10.6% and 17.9%. The downward revision comes amid a challenging sector backdrop: Swiss watch exports to China declined 18.5% year-over-year in August 2026, signaling fragile Asian luxury demand. When publishing first-half 2026 results on July 29, the company also flagged an unfavorable currency impact exceeding 360 million euros on revenues.
A fragile technical rebound with moving averages far overhead
The stock gained 0.26% to 1,356 € during the session, following a close of 1,352.50 € the previous day. This slight uptick occurred while the technical setup remains deteriorated: the price is trading 3.25% below the 20-day moving average at 1,401.58 €, and more than 10.5% below the 50-day moving average at 1,516.30 €. The gap to the 200-day moving average, set at 1,751.85 €, exceeds 22%.
The RSI at 35 is approaching oversold territory without clearly entering it, reflecting progressive exhaustion of selling pressure without a clear reversal signal. The support level at 1,331.50 € constitutes the next level to monitor should weakness resume, while resistance at 1,598 € remains very distant. Over one month, the stock is down 15.14%, a decline that brings the one-year loss to 36%.
