Goldman and UBS slap Hermès with first 'sell' calls in over a year

Hermès shares have received two new “sell” recommendations, from Wall Street giant Goldman Sachs and UBS, Switzerland’s largest bank. This marks the first time in more than a year that the stock received negative ratings. The banks warned that the Birkin bag maker’s era of impressive growth is coming to an end, Bloomberg reports. This comes as the stock is having its worst year in more than three decades.

Goldman Sachs analysts led by Erwan Rambourg identified weakness in non-leather products as a key concern for the company, as those categories depend more heavily on aspirational shoppers, Bloomberg notes. “While we believe its top-line growth is likely to remain slightly ahead of that of its peers, we expect it will prove more muted than investors have become accustomed to,” Rambourg and his fellow analysts argue. Goldman Sachs has set a target price of EUR1,350 per share, implying just 4% upside from the last close.

UBS analyst Zuzanna Pusz, meanwhile, believes cracks are emerging in Hermès’ reputation as one of the luxury sector’s most resilient companies, built on long waiting lists for Kelly and Birkin handbags and tightly controlled supply. Pusz pointed to the greater availability of the brand’s products in the resale market. The bank sharply cut its target price from EUR1,695 to EUR1,168 per share, implying 10% downside from the Friday close.

Hermès’ next test will come when it reports third-quarter results in mid-October. Analysts tracked by Bloomberg expect full-year revenue at constant exchange rates to grow 6.82%. That would be the slowest pace since 2020, when pandemic-related store closures hit the industry, Bloomberg notes.

Hermès shares fell as much as 3% in Paris trading on Monday, which took their decline year to date to more than 40%. The stock is on course for its worst annual performance since the company went public in 1993, Bloomberg points out.

Just last year, the name was among the luxury sector’s best performers as Hermès continued to grow sales despite the broader market downturn. That allowed the company in April 2025 to briefly overtake LVMH, the owner of Louis Vuitton and Christian Dior, by market capitalization.

In August, RBC Capital downgraded Hermès shares from “outperform” to “sector perform.” On Monday, RBC Capital reaffirmed its target price of EUR1,600 per share but lowered its revenue-growth forecast for the luxury brand and its earnings estimates for 2027-2028. Of the 23 analysts covering Hermès, there are 11 “hold” ratings, 10 “buy” calls, and two “sell” recommendations.