Update shared on10 Oct 2025
Fair value Increased 7.54%Analysts have raised their price targets for H & M Hennes & Mauritz, with estimates increasing from SEK 113 to SEK 115 and from SEK 125 to SEK 130. They cite improvements in expected revenue growth and profit margins.
Analyst Commentary
Recent street research has revealed a mix of optimism and caution among analysts regarding H & M Hennes & Mauritz, as reflected in their updated price targets and ratings.
Bullish Takeaways
- Bullish analysts have raised their price targets, indicating a positive outlook on the company's short-term prospects.
- Expectations point to steady improvements in revenue growth, which could drive further valuation upside.
- Enhanced profit margin forecasts suggest operational efficiencies are beginning to materialize.
- Some analysts regard the company's ongoing strategies as supportive of stable financial performance. This may bolster investor confidence.
Bearish Takeaways
- Despite higher price targets, certain analysts caution that the stock may still face headwinds due to competitive pressures.
- Bearish analysts maintain a cautious outlook and highlight lingering concerns over valuation relative to sector peers.
- There are reservations about the sustainability of recent margin improvements in a potentially volatile retail environment.
- Some remain unconvinced that current strategies are sufficient to overcome broader industry challenges and deliver consistent growth.
What's in the News
- H&M announced its new Atelier Autumn-Winter 2025 collection, featuring modern winter essentials, tactile fabrics sourced from Italian mills, and an autumnal color palette. The collection will be available globally starting October 2, 2025. (Atelier Collection Announcement)
- In partnership with Arvind Limited and Deven Supercriticals Pvt. Ltd., H&M inaugurated India's first supercritical CO dyeing machine. This marks a major advance in sustainable textile manufacturing by reducing water, energy, and chemical usage during the dyeing process. (Strategic Alliance Announcement)
- H&M opened a new flagship store at The Original Farmers Market in Los Angeles. The store features an upgraded format, curated shopping experiences, and advanced in-store technology, with further expansions planned in the LA area and Las Vegas. (Store Opening Announcement)
- H&M collaborated with British model and content creator Mia Regan to launch a capsule collection inspired by her personal style and travel experiences. This collection will be available online from July 17th. (Product Collaboration Announcement)
Valuation Changes
- Fair Value: Increased from SEK 136.83 to SEK 147.15. This reflects a reassessment of the company’s intrinsic worth.
- Discount Rate: Edged up marginally from 6.79% to 6.79%. This suggests a very slight shift in perceived risk.
- Revenue Growth: Rose from 1.29% to 2.17%. This indicates improved expectations for top-line expansion.
- Net Profit Margin: Improved from 5.99% to 6.48%. This points to more optimistic profit outlooks.
- Future P/E: Decreased from 18.21x to 17.73x. This implies that shares are valued at a lower multiple of expected future earnings.
Disclaimer
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