Berenberg Keeps Richemont at Hold as Fiscal Q1 Boosted by AI Boom; Price Target, Estimates Up

03:57 AM EDT, 07/17/2026 (MT Newswires) -- Berenberg reiterated its rating for Compagnie Financière Richemont (CFR.SW, CFR.JO), saying the ongoing artificial intelligence-driven "wealth effect" bolstered the Swiss luxury goods group's fiscal first-quarter performance. "Richemont remains an outstanding custodian and operator of hard luxury brands, as the Q127 results (15 July) demonstrate. But it is also a beneficiary of the exceptional AI-driven wealth creation seen globally. With the duration of the AI boom moot, uncertainty around the use of the growing cash pile and a full valuation, we remain at Hold," according to a Thursday note. "Standout contributors to Richemont's Q127 results were the US, Japan, South Korea and Taiwan (c40% group revenues), all of whose equity markets saw strong AI-driven gains in the quarter (ranging from +14% to +68%)," analysts added. Richemont posted group revenue of 6.33 billion euros for the quarter, representing 20% constant currency growth, which the research firm said surpassed consensus estimates by 7% and 900 basis points, respectively, amid "material" broad-based growth. Driven by the fiscal first-quarter "material beat" and "slightly weaker" euro, the research firm raised its revenue projections by 5% to 7%. Meanwhile, Berenberg's EBIT estimates were up 7% to 9% to account for variable costs, while its price target for the stock moved up to 170 francs from 155 francs in line with revised EPS projections.