AlphaValue/Baader Europe Downgrades Rating, Estimates for Hermès Amid 'Less Supportive' Growth Drivers

01:50 AM EDT, 09/14/2026 (MT Newswires) -- AlphaValue/Baader Europe lowered its rating and EPS forecasts for Hermès International (RMS.PA), flagging several structural tailwinds that turned "less supportive." In a Sept. 12 report, the research firm said the lack of "meaningful improvement" in Chinese demand, domestic consumer caution in France, and the ongoing Middle East disruptions continue to weigh on performance, alongside anticipated moderations in luxury pricing. While analysts still view the French luxury group as capable of defending its "exceptional profitability," energy-driven cost pressures prompted AlphaValue/Baader Europe to adopt "more cautious" margin forecasts from the second half onwards. Against this backdrop, analysts updated their rating to add from buy, with a price target of 1,730 euros. The research firm also trimmed its EPS assumptions for full-year 2026 and 2027 to 45 euros and 46.4 euros, respectively, from 45.5 euros and 48.9 euros. "Our revisions do not reflect any deterioration in Hermès' business excellence or competitive positioning. We continue to believe that Hermès should outperform its industry peers, supported by exceptional brand desirability, scarcity, vertical integration and superior exposure to [top-tier] customers," AlphaValue/Baader Europe wrote, noting the "sharp correction" in the luxury sector serves as a "more attractive" entry point for Hermès.