WOSG: Future US Acquisitions And Jewelry Partnerships Will Shape Outlook

Analysts have nudged their price target for Watches of Switzerland Group modestly higher, from roughly £4.75 to about £5.10. They cite slightly stronger margin expectations that more than offset a small tempering of long term growth assumptions and valuation multiples.

What's in the News

• Management reiterates an active search for U.S. acquisition targets, highlighting a robust pipeline of potential M&A opportunities to support long term growth ambitions (Key Developments).
• Watches of Switzerland deepens its strategic partnership with Italian luxury jeweler Roberto Coin through new Roberto Coin boutiques at Hudson Yards in New York and The Forum Shops at Caesars Palace in Las Vegas, strengthening its presence in key U.S. luxury destinations (Key Developments).
• The expanded Roberto Coin collaboration leverages the brand's high profile global campaign featuring Dakota Johnson, aligning Watches of Switzerland with a fast growing, design led jewelry name to broaden its appeal in the international luxury market (Key Developments).

Valuation Changes

• The fair value estimate has risen modestly from approximately £4.75 to about £5.09 per share, reflecting higher expected profitability.
• The discount rate has increased slightly from around 10.19 percent to roughly 10.36 percent, implying a marginally higher required return on equity.
• Revenue growth assumptions have been trimmed, easing from about 6.18 percent to around 5.31 percent annually over the forecast period.
• Net profit margin expectations have improved, moving from roughly 5.35 percent to about 6.12 percent, indicating better anticipated operating leverage.
• The future P/E multiple has been reduced meaningfully from about 14.2x to roughly 12.2x, suggesting a more conservative valuation framework despite the higher fair value.