ShoreCap starts Watches of Switzerland at 'buy'

"Of our UK retail coverage, we would argue that WOS offers one of the highest levels of protection from the decline in consumer sentiment," the broker said.

"Investors have the prospect of high returns given the group’s relationships with luxury watch brands and the retail consolidation via its geographical expansion, with international now 35% of revenues."

ShoreCap said that in a highly fragmented sector, WOS’s almost 100 years of experience has translated into strong growth as a listed company. It noted that over the past three years, the company has tripled EBITDA and doubled operating margins, "a testament to the strong impact of the group’s CEO, Brian Duffy".

"We believe these credentials position the company to be the ‘partner of choice’ for watchmakers, which should fuel growth over the coming years," it said.