Hermès Stock Slides 2.5% and Approaches Four-Year Low
The Parisian leather goods maker retreats during trading, as the CAC 40 edges slightly higher. The stock finds itself at the bottom of the index, alongside other luxury stocks, following a fresh decline that pushes it further away from its moving averages.
Stock Trading 12.4% Below Its 50-Day Moving Average After a Quarter of Decline
Hermès falls 2.52% to €1,277.00, while the CAC 40 gains 0.27%. Over three months, the decline reaches 22.21%, and the price is now 12.40% below its 50-day MA, which stands at €1,457.79. The 200-day MA, at €1,714.79, is even further away. The support level at €1,262.50 is drawing closer: it is just over 1% from the current price, a level close to the four-year low of €1,260.00 recorded on October 5.
The session reflects a declining sector: LVMH falls 2.02% and Kering 2.60%. Kering has lost 13.01% over one month and LVMH 9.28%, trajectories similar to Hermès' (-8.75% over the same period). This parallel movement is an observation, not an explanation for today's movement.
Analyst Price Target of €1,623 versus Current Price of €1,277
Research firm SBG Securities published a price target of €1,623 on October 12, with a buy rating. This target sits approximately 27% above the current price. This potential contrasts with the trend observed over the past year, during which the stock has lost 37.25%. Analyst ratings have moreover been downgraded several times in recent weeks.
In its latest half-year report, published on July 29, the group reported an unfavorable currency impact of over €360 million on first-half revenue, as well as a 4% decline in the Middle East. It also highlighted an acceleration in the second quarter in France, Japan, and the Middle East. The key level to watch remains the support at €1,262.50.
