Swatch Group downgraded to Neutral from Buy at Goldman Sachs

Goldman Sachs analyst Louise Singlehurst downgraded Swatch Group to Neutral from Buy with a price target of CHF 260, down from CHF 365. The shares represent “deep value” but are lacking a catalyst, the analyst tells investors in a research note. The firm says the stock’s underperformance reflects Swatch’s regional sales exposure, a lack of confidence in the company’s ability to deliver sustained margin expansion and low relative levels of visibility with regards to inventory levels across third-party retailers.