European luxury stocks slip after BofA sees lower growth for 'shopped out' sector
** Shares in luxury stocks slip on Monday after BofA Global Research lowered its estimates and cut its ratings and PTs on four companies
** "The luxury consumer is all shopped out," BofA says
** It sees muted revenue growth for the sector through 2025, saying that demand from China, which was the only driver of revenue growth in the first quarter, has recently deteriorated
** BofA expects sector revenue to be down 1% in 2024 and up 3% in 2025, also citing weakness across U.S. and EU consumers
** It cuts its EPS estimates for 2025 by 17% on average, 12% below consensus
**LVMH LVMH.PA, Kering PRTP.PA and Hermes HRMS.PA slip between 1% and 2%
** Hugo Boss BOSSn.DE, Burberry BRBY.L, are down 4-6%, while Moncler MONC.MI and Brunello Cucinelli BCU.MI slide 1-2%
** The STOXX Europe Luxury 10 index .STXLUXP is down 0.8% by 0759 GMT, having dropped almost 6% YTD
COMPANY | RATING | OLD RATING | PT | OLD PT |
|---|---|---|---|---|
LVMH | Neutral | Buy | 700 euros | 950 euros |
Zegna | Neutral | Buy | $9.8 | $13 |
Kering | Neutral | Buy | 265 euros | 400 euros |
Hugo Boss | Underperform | Buy | 40 euros | 45 euros |
Reporting by Alessandro Parodi
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