Pessimistic on H&M

A technical analysis chart shows a record level of caution on Hennes & Mauritz shares

Hennes & Mauritz AB shares have lost more than a quarter of their value this year as the fashion retailer struggles to convince investors it can turn around an inventory build-up. With two-thirds of the company’s market value wiped out in the past three years and the stock hitting its lowest level since 2005, technical charts signal extreme pessimism is now priced in. H&M’s second quarter is shaping up to be “miserable,” Credit Suisse analysts warned in a note on Wednesday, but they kept their neutral rating on the stock, saying it looks “very oversold.”

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