JPMorgan Sees Strong Demand Drives Richemont to Attractive Entry Point

JPMorgan has placed Richemont on its Positive Catalyst Watch ahead of the luxury group's November 13 results. The bank believes that Richemont's shares have become an attractive entry point, despite their recent 11% decline over the past month.

Richemont is expected to post strong jewellery demand, with JPMorgan forecasting a 15% increase in group sales for the second quarter to €5.98 billion. Jewellery Maisons sales are predicted to rise 17%, driven by growth across the portfolio.

JPMorgan's estimates are now 2-4% above consensus for Richemont's fiscal 2027-29 sales and 2-3% ahead on operating profit. The bank attributes the resilience of its forecasts to the group's ability to maintain sales despite a tougher macroeconomic backdrop.