Watches of Switzerland Group PLC (LSE:WOSG) has been upgraded by Deutsche Bank, but the sentiments attached in the commentary don't quite scream wunderbar.
Yes, the German bank's analysts repeat a 'Buy' rating, and lift the price target to 550p, from 450p.
Nevertheless, with the luxury watch retailer's shares up over 50% since September and first-half trading already well guided, with the company flagging better-than-expected growth, at around 20%, the view from DB is that there's limited scope for positive surprises in the near term.
“Whilst we continue to see midterm value in the shares, and lift our TP accordingly to 550p, we do see some risk of travel and arrive at 1H results,” analyst Alison Lygo wrote.
The broker sees upward risk to full-year 2026 estimates but expects the company to remain cautious until there is greater clarity on US consumer behaviour next year.
In terms of forecasts, Deutsche Bank is modelling first-half adjusted EBIT of £67 million, within company guidance of between £66 million and £68 million.