Bernstein: Richemont's Low Exposure to Subdued Luxury Demand in China Helps Insulate Near-term Growth

08:56 AM EDT, 09/29/2026 (MT Newswires) -- Bernstein expects Compagnie Financière Richemont's (CFR.SW, CFR.JO) growth over the near term to be shielded from sustained luxury demand weakness in China due to its lower exposure compared with industry peers. "Richemont - our top pick - remains in a state of grace, as dominance in jewellery allows it to be effective at both extremes of a globally polarising consumer audience," the research firm said in a Global Luxury Goods report focused on Chinese consumer outlook published Monday. "Our top-line forecasts for Richemont remain unchanged. We continue to expect Richemont's Jewellery Maisons to enjoy strong brand momentum, while Richemont's relatively low exposure to Mainland Chinese demand should help to insulate near-term growth." Meanwhile, the EPS estimates for fiscal years 2027 and 2028 were reduced by 3% to 4%, although still above consensus estimates, mainly driven by lower EBIT percentage projections over the period due to updated operating leverage assumptions. The outperform-rated stock's price target of 240 francs was maintained.