Update shared on 06 Nov 2025
Fair value Decreased 0.26%Narrative Update on Hermès International Société en commandite par actions
Hermès’ fair value estimate has been slightly reduced from €2,397.95 to €2,391.70. Analysts cite modestly softer growth expectations and a more cautious sector outlook, which is reflected in multiple recent price target decreases.
Analyst Commentary
Recent research reflects a more cautious sentiment among analysts toward Hermès International. Several price target reductions and changes in ratings highlight shifting perceptions on valuation and sector dynamics.
Bullish Takeaways
- Despite recent sector challenges, some analysts maintain Neutral rather than negative ratings. This reflects ongoing confidence in Hermès' resilience and premium positioning.
- Price targets, even after reductions, remain above current market prices. This signals continued belief in Hermès' long-term brand strength and global demand for its luxury goods.
- Ongoing innovation and the introduction of new creative directors across the sector could provide fresh growth opportunities. Hermès may benefit given its reputation for craftsmanship and exclusivity.
Bearish Takeaways
- Several price target cuts signal concerns around slower growth expectations, with recent adjustments lowering targets from previous highs.
- Ratings downgrades from Buy or Overweight to Hold or Neutral suggest more cautious outlooks on both valuation and near-term earnings momentum.
- Analysts note that the luxury sector is entering a "hangover" period following multiple years of above-trend growth. Hermès is not immune to broader industry headwinds.
- Increased competition, as new creative leadership emerges at rival brands, adds additional pressure on Hermès to maintain its market-leading status and justify premium valuations.
Valuation Changes
- Fair Value Estimate has decreased slightly from €2,397.95 to €2,391.70.
- Discount Rate has risen marginally from 7.77% to 7.93%.
- Revenue Growth Forecast edged down from 8.48% to 8.45%.
- Net Profit Margin estimate declined fractionally from 30.99% to 30.97%.
- Future P/E Ratio has increased slightly from 50.27x to 50.42x.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.