Update shared on 25 Nov 2025
Hermès International's analyst price target has been trimmed modestly in recent weeks, falling by EUR 30 to a new average of EUR 2,360. Analysts cite shifting sector preferences and a more cautious outlook on luxury sector growth.
Analyst Commentary
Recent analyst reports offer a nuanced view of Hermès International's position within the luxury sector, highlighting both optimism regarding the brand's strengths and caution concerning broader industry dynamics and near-term growth prospects.
Bullish Takeaways
- Analysts continue to recognize Hermès as a highly desirable luxury brand, underpinned by its reputation for exclusivity and strong pricing power.
- The company's premium valuation reflects consistent long-term outperformance and resilience, even amid shifting market conditions.
- While price targets were trimmed, most analysts maintain a Neutral stance. This indicates sustained confidence in the company's fundamentals and execution.
Bearish Takeaways
- Several analysts have lowered price targets, signaling more moderate growth expectations for both Hermès and the luxury sector as a whole.
- There is increased caution around the impact of industry-wide changes, including a notable influx of new creative directors at major luxury brands. This has led to uncertainty over near-term brand momentum.
- The sector is emerging from a period of above-average growth, and some expect a "hangover" effect to curb performance over the next few years.
- Some observers have downgraded ratings on Hermès, citing a desire for greater visibility into the sustainability of elevated growth rates before taking a more optimistic stance.
Valuation Changes
- Fair Value remains unchanged at €2,391.70, signaling stability in long-term valuation assumptions.
- Discount Rate has risen slightly from 7.93% to 7.94%, reflecting a modest increase in required returns or perceived risk.
- Revenue Growth projection has decreased marginally, moving from 8.45% to 8.45% per year.
- Net Profit Margin is up fractionally, inching from 30.97% to 30.97%, indicating resilient profitability expectations.
- Future P/E ratio has increased slightly from 50.42x to 50.45x, reflecting stable but high relative valuation multiples.
Disclaimer
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