Bernstein Notes 'Powerful' Structural Tailwinds for Richemont

12:43 AM EDT, 09/02/2026 (MT Newswires) -- Bernstein believes "powerful" structural momentum will support Compagnie Financière Richemont (CFR.SW, CFR.JO) higher valuation and total shareholder return. "We believe investors remain anchored to CFR's past. Yet both the company and the luxury market have changed materially. CFR has resumed portfolio discipline and become increasingly concentrated in [Jewellery Maisons], while consumer [polarization] is amplifying the advantages of Cartier and [Van Cleef & Arpels]. The combination of tighter capital discipline, structurally superior organic growth and higher operating leverage should drive further [return on invested capital] improvement. As a result, CFR's own history may prove an increasingly poor guide to its future valuation," according to a Tuesday note. The research firm also sees that margin headwinds are easing as operating leverage "should remain." "Gold inflation, FX headwinds, tariffs and [Specialist Watchmakers] weakness have obscured much of the earnings benefit from JM's superior growth over the past two years. However, many of these pressures are moderating or reversing, while the drivers of the group's organic growth outperformance remain intact," analysts wrote. Bernstein rates the stock at outperform, with a price target of 240 francs.