RBC Updates Richemont Forecasts Ahead of Fiscal H1 Results; Outperform Retained

09:42 AM EDT, 10/21/2026 (MT Newswires) -- RBC Capital Markets made changes to its forecasts for Compagnie Financière Richemont (CFR.SW) ahead of the Swiss luxury goods group's fiscal first-half results on Nov. 13. The Cartier owner is projected to report a 15.6% organic growth in revenue to 12.2 billion euros for the six months ended Sept. 30, in line with market expectations, according to a Wednesday note. "Our investment case rests on three pillars: (i) sector-leading revenue (+8%) and EBIT (+12%) growth to FY30E, (ii) a gross margin recovery story that we estimate will inflect positively from 2H27E, and (iii) valuation dislocation that offers an attractive entry point following 4x P/E de-rating since July 2026, despite modest positive EPS revisions," analysts said. The research firm made "minor" upgrades to its revenue and EPS estimates for fiscal years 2027 through 2029 as it took into account currency movements and adjustments to its underlying assumptions. RBC added that key areas to watch for at the results release include Richemont's capital allocation and rumored De Beers interest, as well as Chinese cluster moderation and US trends. The stock's outperform rating and price target of 220 francs were both reaffirmed.