HSBC cuts LVMH, Burberry as luxury recovery proves slow

Kering SA

09/09/2026 09:20

** HSBC downgrades LVMH LVMH.PA and Burberry BRBY.L to "hold" from "buy", as it expects H2 to be softer than H1 on average
** "The creativity reset we were hopeful about in soft luxury... has not had an immediate positive impact. It is building gradually, depending on the brands," it says
** HSBC cites a challenging macro backdrop and a slower-than-expected pick-up at Dior for LVMH, despite expressing confidence on the mid-to-long-term growth potential of the group
** For Burberry, the broker says the turnaround is tracking well, but visibility on H2 organic sales growth development is limited
** It also cuts target prices for Hermes HRMS.PA and Kering PRTP.PA to €1,650 and €490, respectively, on the lack of short-term catalysts and lower earnings estimates
     
COMPANY
RATING
OLD RATING
PT
OLD PT
Burberry
Hold
Buy
1,200 pence
1,350 pence
Hermes
Hold
Hold
€1,650
€1,870
Kering
Buy
Buy
€305
€340
LVMH
Hold
Buy
€490
€600
Moncler
Buy
Buy
€60
€67
Prada
Buy
Buy
HK$47
HK$48
Richemont
Buy
Buy
CHF 225
CHF 215
Swatch
Hold
Hold
CHF 175
CHF 190

(Reporting by Gianluca Lo Nostro)
((gianluca.lonostro@thomsonreuters.com;))