Bernstein Cuts Hermès Price Target, Estimates Amid 'More Subdued' Chinese Demand Backdrop

02:47 AM EDT, 09/21/2026 (MT Newswires) -- Bernstein lowered its price target and "reset" its organic growth forecasts for Hermès International (RMS.PA), citing a "more subdued" Chinese demand landscape over the summer and a lack of positive drivers in the second half. In a Monday note, the research firm highlighted softening discretionary demand in China amid recent fiscal policy changes and macroeconomic headwinds. "While Hermès has been more resilient the most, it is not immune to the broader trend," analysts wrote. As such, Bernstein cut its third-quarter and full-year 2026 organic growth estimates to 4.7% and 6.2%, respectively, from 6.4% and 6.8%, while its 2026 and 2027 EPS forecasts are 3% and 4% below consensus. Accordingly, the research firm slashed the outperform-rated stock's price target to 1,750 euros from 2,150 euros. "Hermès sees significant opportunity in the high-end in a K-shaped market. As we have pointed out, Hermès is working to leverage it: the launch of couture next year, more "arts & craft" exceptional bags, high jewellery collections launched every year (rather than every two), 'high silk,' high-end watches, better centralized service and facilities for VIC. The limiting factor is the number of skilled workers."