Goldman ups Watches of Switzerland to 'buy', shares surge
Watches of Switzerland Group
457.60p
15:44 22/11/24
2.33%
10.40p
Watches of Switzerland surged on Wednesday after Goldman Sachs upgraded the shares to ‘buy’ from ‘neutral’.
FTSE 250
20,584.46
15:45 22/11/24
n/a
n/a
FTSE 350
4,551.10
15:45 22/11/24
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FTSE All-Share
4,506.61
15:45 22/11/24
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Personal Goods
13,854.22
15:44 22/11/24
2.70%
364.85
GS noted the share price has fallen by 40% year-to-date, underperforming the luxury sector by 11% and the general retail sector by 2%.
"We expect Watches of Switzerland to have a relatively more resilient sales profile than peers, due to its high exposure to waitlisted products, which is underestimated by the market, in our view," it said.
"We look for a 16% revenue compound annual growth rate in FY22-26E. With 55% upside to our new 1,330p 12-month price target (up circa 5% from 1,265p), we see the risk-reward profile as attractive and upgrade the stock."
At 1600 BST, the shares were up 7.8% at 924p.