Watches of Switzerland had its target price cut by Jefferies although the bank said it continues to see it as an “attractive proxy” for watches.
Analysts at the bank cut its target price to 1300p from 1500p, although they retained a 'buy' on the Rolex seller.
“We remain buyers of the name as we continue to see the investment thesis as compelling and unique in terms of resilience and opportunity,” said the broker.
Jefferies said it expects Watches of Switzerland to meet guidance for the fiscal year 2023, while waiting lists for luxury watches give it “confidence on the resilience of sales.”
“While waiting lists have always been a feature for some models of Rolex, through 2021 and 2022 there was an expansion in both the breadth of waiting lists and their length which are 8+ years for some models.”
Watches of Switzerland also has a strong store opening pipeline for 2024, including expansion at Bond Street and a new outlet in New York.