Street Calls of the Week
Investing.com - Kepler Cheuvreux raised its price target on Hennes & Mauritz AB (ST:HMB) (OTC:HNNMY) to SEK175.00 from SEK165.00 on Thursday, while maintaining a Buy rating on the stock.
The research firm expects H&M to deliver solid third-quarter results for the June to August period when the company reports on September 25, 2025.
Kepler Cheuvreux projects a 2% year-over-year growth in local currency sales and approximately 13% year-over-year growth in EBIT, reaching SEK 3,953 million for the quarter.
The firm believes fundamentals are in place for improved margins, supported by favorable external factors affecting gross margins and operating expense leverage, though it acknowledges that improving sales growth remains key to the investment case.
Kepler Cheuvreux also notes that H&M’s robust balance sheet continues to allow for healthy dividends, with the price target increase coming after a transfer of coverage resulted in new model ownership.
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