Kepler Cheuvreux upgraded Swatch Group to Buy from Reduce and raised its price target to CHF225 from CHF180, citing stronger-than-expected sales momentum and improving profitability. The brokerage noted local-currency sales growth has been stronger than expected, supported by the successful launch of the Royal Pop collection in the lower- and mid-tier segments, higher price points at Omega, and improving demand for Breguet. Kepler raised its earnings-per-share forecasts by about 11% for 2027-28, with revised estimates around 40% above consensus for 2026-28, and expects profitability to continue improving into 2027. The brokerage said Swatch continues to trade below book value and believes positive earnings surprises could narrow the valuation discount, with the new target price implying roughly 16 times 2028 earnings and about one times book value.
The Swatch Group AGKepler Cheuvreux upgraded Swatch to Buy and raised price target, citing stronger sales and profitability.