Societe Generale reduces H & M's share to less than 100 SEK

Societe Generale has, with SEB, the lowest price for the share of H & M among the approximately 30 banks and analytical houses included in the Bloomberg compilation.

H & M's action closed on Monday at a little over 139 SEK

Société Générale sings to the biggest pessimists in terms of developing H & M. The French bank , which lowered the target price to SEK 99, estimates that the profits of the clothing company will continue to decline next year.

"Even after two years of declining earnings per share, we expect a 16% drop in earnings per share this year." According to the Bank, which is, according to her, 12% below average analysts' forecasts

The bank notes, among other things, that the movements of the dollar will have a negative effect of 0.7 percentage point on the gross margin in the next financial year, at the same time, says Société Générale. indicates that H & M will succeed in reversing the trend of comparable sales in its ambition to correct past matching and recovery errors.

H & M management has a goal Operating profit for the first half was 7.2 billion crowns, or $ 10.8 billion for the same period last year.

"It has become more difficult to 39; reach the annual goal, but still six months to see, "said General Manager Karl-Johan Persson at the end of June.

Société Générale finds that H & M's inventory levels are still too high and warns the company in the income statement for the third quarter.

The French Bank lowered its estimate of H & M's net profit by 10 percent for 2018 and by 18 percent for next year. As a result, the value of the cash flow-based model of the bank dropped and the target price rose from 107 to 99.

As announced Tuesday the News Agency News Agency, Societe Generale and SEB have the lowest price of the H & M stock 30 banks and analytical houses included in the Bloomberg compilation.

For the 11th time, the H & M stock had supported 0.3% on Tuesday and was just under 139 crowns.