HK-listed L'Occitane falls most in 9 months after sales update; brokers cut PT

L'Occitane International SA

01/02/2023 02:55

** Shares of skincare products maker and chain operator
L'Occitane International SA  0973.HK  fall as much as 6% to
HK$20.45, and on course for the biggest daily pct decline since
April 25, 2022, if losses hold
    ** Stock sinks to the lowest since Nov. 29; the
third-biggest pct loser in Hang Seng Composite Index  .HSCI  
    ** L'Occitane says sales reached 1.6 billion euros ($1.74
billion) for 9 months ended in December 2022, representing a
10.6% year-on-year growth at constant rates, while Oct-Dec
quarter, or Q3, up 4.5% at constant rates  urn:newsml:reuters.com:*:nFWN34G0FF
    ** Jefferies maintains "buy" rating on the stock but trims
TP to HK$34.70 from HK$40.30, saying sales trend for Q3 was
lower than expected and the brokerage lowers net profit forecast
to reflect a lower margin assumption with operating deleverage
on lower sales growth
    ** Daiwa reaffirms "buy" but cuts TP to HK$29.20 from
HK$30.50, as it revises down earnings forecast to reflect lower
revenue growth and brand-level operating margin assumptions 
    ** The Hang Seng Commerce & Industry Index  .HSNC  gains
0.1% and the Hang Seng consumer goods and services index
 .HSCGSI  climbs 0.2%
    ** The Hang Seng Composite Index  .HSCI  slips 0.2% and the
benchmark Hang Seng Index  .HSI  eases 0.3%    
($1 = 0.9212 euros)
 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))