Luxury Sector Cut at Barclays, Deutsche Bank on China Woes
- Deteriorating China economy to weigh on sales, Barclays says
- Luxury stocks still expensive despite gloomy outlook: Deutsche
A LVMH Moet Hennessy Louis Vuitton SE store in Shanghai, China.
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Luxury-goods companies face the risk of disappointing sales growth in China that will weigh further on their stock prices, Barclays Plc and Deutsche Bank AG said, cutting their ratings on the industry.
Barclays analyst Carole Madjo reduced her recommendation on France’s LVMH to equal-weight from overweight and the firm lowered its view on the sector to neutral from positive. Deutsche Bank’s European equity strategists downgraded consumer products because of the luxury companies’ exposure to China.