AlphaValue/Baader Europe Keeps 'Conservative View' on H&M's Sales Trajectory Amid Demand Concerns; EPS Forecasts Updated

06:04 AM EDT, 07/16/2026 (MT Newswires) -- AlphaValue/Baader Europe maintained its cautious stance on H&M Hennes & Mauritz's (HM-B.ST) top-line recovery, as the research firm updated its EPS estimates to reflect a mix of improved profit margins and muted consumer demand. "We have incorporated the FY25 results. While top-line momentum remains subdued, the [stronger-than-expected] improvement in profitability and inventory discipline, which emerged in Q4 25, has extended into FY26, resulting in better earnings than previously expected. We therefore modestly increase our margin assumptions from FY26 onwards. Nevertheless, given management's cautious commentary on demand and the lack of visibility on top-line reacceleration, we maintain our conservative view on sales trajectory," analysts said Wednesday. Within this context, the research firm lifted its EPS projection for fiscal 2026 by 1.9% to 7.43 kronor and cut its fiscal 2027 assumption by 6.25% to 7.95 kronor. The stock has an add rating and a price target of 186 kronor at AlphaValue/Baader Europe.