HUGO BOSS: Citigroup Lowers Target Price
Overview
Citigroup has lowered its target price for HUGO BOSS stock from €68 to €60, citing concerns about the company's exposure to the Chinese market and the impact of the COVID-19 pandemic on its sales.
The downgrade comes as HUGO BOSS's share price has been under pressure in recent months, falling from a high of €80.20 in January 2022 to €55.80 as of March 8, 2023.
Key Points
Citigroup's downgrade of HUGO BOSS's target price is based on the following key points:
- The company's exposure to the Chinese market, which is experiencing a slowdown in economic growth.
- The impact of the COVID-19 pandemic on HUGO BOSS's sales, which have been hit by store closures and travel restrictions.
- The company's high levels of debt, which could make it vulnerable to a downturn in the economy.
Outlook
Citigroup believes that HUGO BOSS's share price is likely to remain under pressure in the near term, as the company faces challenges in its key markets.
However, the bank remains positive on the company's long-term prospects, citing its strong brand and global reach.
Recommendations
Citigroup recommends that investors hold their HUGO BOSS shares, as the bank believes that the company's long-term prospects remain strong.
However, the bank advises investors to be aware of the risks associated with the company's exposure to the Chinese market and the impact of the COVID-19 pandemic on its sales.
