Hermès Kept at Buy as Berenberg Notes Market Reaction to 'Conservative' FY27 Pricing Guidance

04:49 AM EDT, 07/31/2026 (MT Newswires) -- Berenberg maintained its investment stance on Hermès (RMS.PA), saying the 12% drop in its shares after the first-half 2026 results was due to the French luxury giant's "conservative" full-year 2027 pricing outlook. "Hermès has reported its H126 results, with Q2 sales broadly in line with consensus and H1 profitability ahead with strong inventory management. Shares sold off due to conservative pricing commentary, but we view this as [foreign exchange normalization], not weaker pricing power. We increase our FY27-28 estimates by 70 [basis points] to reflect FX tailwinds and reiterate our Buy rating and EUR1,850 price target," the research firm said Thursday. Analysts noted management commentary that 2027 price hikes are projected to moderate just under the prices implemented in 2026, as a "weaker" euro is expected to reduce foreign exchange drag. "Management confirmed that pricing remains a function of French production costs, rather than a key lever to drive growth," the note said. Against this backdrop, Berenberg raised its sales, EBIT and EPS forecasts for 2027 and 2028 by 0.7%.