Analyst Note| Jelena Sokolova, CFA |
We are increasing our fair value estimate for wide-moat Cie Financiere Richemont to CHF 87 per share from CHF 82 per share to account for better-than-expected sales in the most profitable Jewellery Maisons division and euro/Swiss franc exchange-rate movements. After being up over 70% since March 2020 lows, Richemont shares are trading approximately in line with our fair value estimate, in 3-star territory. On an absolute level, Richemont’s watchmaking peer Swatch looks more attractive to us offering about 20% upside. However, on a relative basis Richemont still looks more attractive than its wide-moat luxury peers LVMH or Hermes (both are trading in 1-star territory).