Market Watch: H&M Sees Shift in Analyst Sentiment

In a significant development for Swedish clothing retailer H&M Hennes & Mauritz AB, analysts at Handelsbanken are painting a rosy picture of the company’s earnings prospects. According to the bank’s latest assessment, H&M is poised to exceed expectations in the third quarter, with a higher-than-expected EBIT margin and revenue. This optimistic outlook is a departure from the consensus estimate, and has led Handelsbanken to maintain its “buy” recommendation on the stock.

The bank’s analysts are confident that H&M has the potential to surprise on the upside, citing the company’s ability to adapt to changing market conditions. This sentiment is reflected in the bank’s unchanged “buy” recommendation, which suggests that investors should consider taking a bullish stance on the stock.

In contrast, Barclays has taken a more cautious approach, downgrading its price target for H&M to 130 kronor from 134 kronor. While the bank maintains a “neutral” recommendation, its analysts believe that the worst is behind the company, and that any future profit revisions will be positive. This nuanced view suggests that while H&M still faces challenges, the company is on the path to recovery.

A significant development that has caught the attention of investors is the Persson family’s recent purchase of H&M shares. The family, which controls a substantial portion of the company’s shares, acquired 1.8 million shares between August 13 and 15, spending approximately 256 million kronor in the process. This move is seen as a vote of confidence in H&M’s prospects, and suggests that the family remains committed to the company’s long-term success.

Key Developments:

  • Handelsbanken predicts H&M will exceed expectations in the third quarter, with a higher-than-expected EBIT margin and revenue.
  • Barclays downgrades its price target for H&M to 130 kronor from 134 kronor, while maintaining a “neutral” recommendation.
  • The Persson family acquires 1.8 million H&M shares, spending approximately 256 million kronor in the process.