07:01 AM EDT, 10/23/2026 (MT Newswires) -- Berenberg downgraded its rating on Hermès International (RMS.PA) to hold from buy following its third-quarter revenue update, amid persistent weakness in China. "The loss of the historical double-digit growth premium over LVMH in key regions is worrying. We fear that overexposure to China and a greater exposure to a more aspirational consumer than we previously thought will continue to weigh on Hermès' revenues," analysts said in a note published Friday. "We no longer give Hermès the benefit of the doubt and cut our rating to Hold and our price target to EUR1,230 (from EUR1,850), based on a post-2009 trough P/E (a post-2005 trough P/E of 20x would imply EUR1,060)." The French luxury group's third-quarter revenue totaled 4.10 billion euros, up 4.3% year over year, at constant currency, but below the consensus estimate of 4.12 billion euros. Berenberg noted that revenue growth missed market forecasts for the third straight quarter, with the slowdown in the Americas region and broad weakness in non-leather goods categories also weighing on the results. Taking these into account, the research firm reduced its sales estimates by 0.6% for 2026, 1.9% for 2027 and 3.4% for 2028, alongside lower EBIT and EPS projections for all three years.

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