[ET Net News Agency, 22 July 2020] Jefferies Research lowered its target price for
L'Occitane International (00973) to HK$16 from HK$16.7 and maintained its "buy" rating.
The research house said L'Occitane's 1Q FY2021 trading performance was in-line with
estimates. However, it guided for a lower-than-expected market/our estimates in EBITM for
FY2021 as retail business has a higher fixed cost.
Jefferies adjusted its net profit forecast by 40%/7%/6% for FY2021/22/23 to reflect the
new guidance. It remains positive on L'Occitane as it believes L'Occitane's business will
recover from FY2022 with EBITM recovering to FY2020 level. (KL)