On Monday, Jefferies reaffirmed its Buy rating on Hugo Boss AG (BOSS:GR) (OTC: BOSSY), maintaining a share price target of €65.00. The firm highlighted the complexities in assessing the Western consumer market, which has shown mixed signals in recent corporate communications. Despite the challenges, the analyst expressed confidence in Hugo Boss's upcoming first-quarter performance.
The company's shares have been under pressure, currently trading at approximately 9 times the calendar year 2025 price-to-earnings ratio. Jefferies anticipates that the Q1 results, scheduled to be released on May 2, 2024, will demonstrate solid market share gains for Hugo Boss, albeit with slight margin pressures.
The analyst predicts that Hugo Boss's earnings before interest and taxes (EBIT) for the first quarter will surpass consensus estimates. This outlook is based on the expectation of moderate margin headwinds alongside the company's strong market share performance.
The reaffirmation of the Buy rating and the €65.00 price target ahead of the Q1 earnings release underscores Jefferies' confidence in Hugo Boss's ability to navigate the current market effectively.
InvestingPro Insights
As we anticipate Hugo Boss AG's Q1 2024 results, the latest data from InvestingPro provides a comprehensive picture of the company's financial health and market performance. With a market capitalization of $3,810 million and a P/E ratio of 13.69, Hugo Boss presents a potentially attractive valuation, especially considering its adjusted P/E ratio of 13.35 for the last twelve months as of Q4 2023. Furthermore, the company's revenue growth of nearly 15% during the same period signals robust business expansion.
InvestingPro Tips highlight Hugo Boss's impressive gross profit margins of 61.49% and suggest that the stock may be in oversold territory, as indicated by its RSI. These insights could be particularly relevant for investors looking for opportunities in the current market. Additionally, Hugo Boss has maintained dividend payments for 33 consecutive years, showcasing its commitment to shareholder returns.
Prospective investors and current shareholders can uncover more insights and tips, such as the company's liquidity position and its trading proximity to its 52-week low, on InvestingPro. For those interested in a deeper analysis, there are 11 additional InvestingPro Tips available at https://www.investing.com/pro/BOSSY. To enrich your investing strategy, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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