Goldman Sachs and UBS downgrade Hermès on slowing growth outlook

Two major banks have told investors to sell shares in the luxury brand Hermès. Goldman Sachs and UBS both issued sell ratings this week, which is rare for a company that usually receives strong support from analysts. UBS analyst Susanna Pusch cut her price target sharply, from €1,695 to €1,168. She now expects the company to grow just 3% per year in the long term, down from 5% before. Hermès shares have already fallen more than 40% this year, their worst drop since the company went public in 1993. Analysts say the luxury sector is slowing down because everyday consumers are spending less. The second-hand market for Hermès products has also grown, which is reducing demand for new items.