25th Jul 2022 14:02
(Alliance News) - Watches of Switzerland Group PLC offers investors the fastest growth within the hard luxury space over the next four years, Shore Capital said in a research note on Monday.
The broker started coverage on the luxury timepiece retailer with a 'buy' rating noting that in the past three years, it has tripled earnings before interest, tax, depreciation, and amortisation and has doubled operating margins, which was a testament to the strong impact of Chief Executive Officer Brian Duffy.
"Of our UK retail coverage, we would argue that WOS offers one of the highest levels of protection from the decline in consumer sentiment. Investors have the prospect of high returns given the group's relationships with luxury watch brands and the retail consolidation via its geographical expansion, with international now 35% of revenue," said Shore's Eleonora Dani.
In addition, Dani said that in a highly fragmented sector, Watches of Switzerland's almost 100 years' experience has translated into strong growth as a listed company.
"We believe these credentials position the company well to be the 'partner of choice' for watchmakers, which should fuel growth over the coming years," Dani added.
The stock was up 0.1% at 884.50 pence in London on Monday. It is down 9.7% over the past 12 months.
By Arvind Bhunjun; [email protected]
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