RBC Cuts Hermès Price Target After Q3 Revenue Miss; Forecasts Revised

08:11 AM EDT, 10/23/2026 (MT Newswires) -- RBC Capital Markets reduced its price target for Hermès International (RMS.PA) after the French luxury goods company's third-quarter revenue missed market forecasts, confirming softness in non-Leather categories and China. "Absent a meaningful macro recovery, these headwinds are likely to persist into coming quarters. Share price reaction post-results, on broadly unchanged EPS (RBCe) signals further sentiment softness, with shares now trading at 26x CY27E P/E and valuation downside risk an ongoing overhang given narrower relative growth differential vs luxury sector than in the past," the research firm said Friday. Hermès' third-quarter total revenue reached 4.10 billion euros, up 4.3% year over year on a constant currency basis, against the consensus estimate of 5.2%. Against this backdrop, RBC cut the price target to 1,500 euros from 1,600 euros, with a sector perform rating on the stock. Analysts also made "small" changes to their forecasts, including lower organic revenue growth and EPS expectations for 2026. For 2027 and 2028, total revenue and EPS estimates were lifted by 1% on the back of "more positive" foreign exchange.