Hermes International SCA RMS

Investing.com -- Citi cut its price target on Hermes to 1,540 euros from 1,689 euros and kept a Neutral rating on the stock in a note on Wednesday, citing “continued demand weakness in China and a softer backdrop in France.”

Investing.com -- European assets may offer investors advantages that are being overlooked as markets remain heavily focused on U.S. technology leadership, according to Macquarie Global Strategy, which sees structural changes supporting stronger European returns.

Hermès International Société en commandite par actions has seen its share price fall sharply this year, which puts fresh focus on what investors are really paying for the group’s earnings today. With a long track record in high-end luxury goods, the question now is how well the current valuation lines up with the profits the business is generating. The stock is down 32.8% year to date, so any view on Hermès now turns on whether the earnings profile still supports the price after that...