SRH AlsterResearch AG Initiation: Hugo Boss - FY figures 2020 deep red but rebound ahead, Initiate with BUY

Hugo Boss AG Retail Market Cap EUR 2.3bn BUY, PT EUR 37.00 (upside 12%) Hugo Boss AG_initiation In Q4 2020, the Hugo Boss Group once again posted revenue declines in all reporting regions and a net loss for the period that was far higher than expected. Now, the outlook is brightening, albeit slowly. For the time being, it is hard to predict when the pandemicrelated restrictions will be lifted to such an extent that demand for classic fashion will pick up again. However, the group is well positioned for the future with the expansion of online retail. In H1 2021, 12 more countries will be added to the online store, including Russia, South Korea and Turkey. In addition, the development of the Chinese market is still in its early stages. Taking a global recovery after the pandemic into account, we value Hugo Boss halfway 2021E/2022E, which derive at an average price target of EUR_37.00. We therefore start our coverage with a target price of EUR 37.00 and a BUY rating based on FCF yield. For 5 current investment ideas, check our Weekly Screener Please note that AlsterResearch publishes MiFID II compliant research only. For a detailed discussion on MiFID II, please visit https://www.research-hub.de

 

 

In Q4 2020, the Hugo Boss Group once again posted revenue declines in all reporting regions and a net loss for the period that was far higher than expected. Now, the outlook is brightening, albeit slowly. For the time being, it is hard to predict when the pandemicrelated restrictions will be lifted to such an extent that demand for classic fashion will pick up again. However, the group is well positioned for the future with the expansion of online retail. In H1 2021, 12 more countries will be added to the online store, including Russia, South Korea and Turkey. In addition, the development of the Chinese market is still in its early stages. Taking a global recovery after the pandemic into account, we value Hugo Boss halfway 2021E/2022E, which derive at an average price target of EUR_37.00. We therefore start our coverage with a target price of EUR 37.00 and a BUY rating based on FCF yield.