Hermes International initiated with "underperform"

09/27/07 - Credit Suisse

LONDON, September 27 (newratings.com) - Analyst R Fujimori of Credit Suisse initiates coverage of Hermes International (HRMS) with an "underperform" rating. The target price is set to €70.

In a research note published this morning, the analyst mentions that the company has a robust and highly profitable business model. Hermes International’s current share price, however, fully reflects the company’s strong fundamentals, the analyst says. In view of the Hermes family’s reluctance to sell their controlling stake, a takeover scenario appears unlikely in the short term, Credit Suisse adds.