Citi cuts Hermes price target to 1,540 euros on China weakness

Investing.com·30 Sep 2026·

·Read original

2▲0 ▼1Impact / 5

Analyst Analyst Textiles, Apparel & Luxury Goods

RMS.PA ▼

C ±

Summary · why it matters

Citi lowered its price target on Hermes to 1,540 euros from 1,689 euros while keeping a Neutral rating on the stock, citing continued demand weakness in China and a softer backdrop in France. Ahead of the luxury group's third-quarter sales, the bank trimmed its forecasts, expecting trends in other regions to remain broadly in line with the second quarter. Citi cut its second-half constant-currency growth assumption for leather goods by half a percentage point, though it still forecasts double-digit growth in the division at 10% in the third quarter and 11% in the fourth, supported by volume growth of close to 6%. Growth in non-leather goods was reduced to 3% from 4% for the second half, with Citi pointing to further weakness in aspirational categories over the summer. The bank also trimmed its group sales forecasts for 2026, 2027 and 2028 by about 0.5%, now expecting constant-currency growth of 6.4% in 2026, down from 6.8%, after Hermes grew 6.1% in the first half, and it cut operating profit and earnings per share estimates for all three years by about 1%.

Hermes International SCA ▼

Citigroup Inc. ±