- Watches of Switzerland Group
- 03 September 2025 10:54:46
Source: Sharecast
The bank said: "We believe the downside risk to WOSG earnings driven by US import tariffs is much more contained than the shares are reflecting.
"This is based on our view that where the real risk sits, demand for non supply constrained brands in the US, is a much smaller part of the gross profit pool than is perhaps appreciated."
DB said that on its estimates it’s circa 12% of the gross profit pool this year, and this limits the downside risk.
"Even on a sharper downside scenario that sees these brands put through 15% pricing with volumes - 30% in FY27 and squeeze margins further, the shares are still trading on a circa 9x PE, versus the 11x our target price is predicated on."
Deutsche Bank kept its price target at 450p.
Earlier on Wednesday, the company said in an update that it does not expect any material impact from US tariffs in the first half of fiscal 2026 as brand partners increased inventories.
WOSG held full-year guidance despite US President Donald Trump slapping Switzerland with a shock 39% tariff on exports. It said trading had been consistently strong in the 18 weeks to August 31.
At 1050 BST, the shares were up 7% at 341.20p.
