HSBC downgraded LVMH (LVMHF) to a hold rating on Wednesday. The bank cited limited visibility for the luxury sector during the second half of the year.
Analysts noted slower-than-expected performance at Dior and the broader Fashion and Leather Goods division. LVMH shares fell 2.2% following the announcement.
HSBC established a new price target of €490 for the stock. The company's shares have declined approximately 35% year-to-date. Weakening demand in China continues to weigh on the luxury market's outlook.