Berenberg downgraded Hermès International to hold from buy. It cut its price target to €1,230 from €1,850.
The revision followed a disappointing third-quarter trading update that showed slowing growth. Revenue missed consensus estimates for the third consecutive quarter.
Berenberg cited persistent weakness in China, a slowdown in the Americas and lackluster performance in categories outside Hermès’ core leather goods. The bank said the company’s historical double-digit growth advantage over LVMH had faded in key markets. It also raised concerns about Hermès’ exposure to more aspirational consumers, who are pulling back on spending.
Berenberg said it was “no longer willing to give Hermes the benefit of the doubt” because of recurring revenue misses and a lack of clarity from the company. The bank lowered its sales and profit forecasts for 2027 and 2028.