Berenberg Urges Selling Luxury Stock Rallies as Valuations Face 25%-35% Drop
Updated
Updated · Bloomberg · May 11
Berenberg Urges Selling Luxury Stock Rallies as Valuations Face 25%-35% Drop
3 articles · Updated · Bloomberg · May 11
Berenberg told investors to sell any rally in luxury stocks, arguing the sector now faces entrenched growth challenges rather than a short-term slowdown.
Nick Anderson’s team expects average luxury-sector valuations to fall 25% to 35% from levels seen over the past nine years, implying further downside even after recent weakness.
The call reinforces Berenberg’s view that the luxury boom has ended, shifting the investment case from premium growth to a prolonged derating risk.
With valuations set to plunge, is the luxury sector facing a crisis or a historic buying opportunity?
As luxury stocks fall, why are high-end experiences and jewelry still thriving?
Can luxury brands win over Gen Z's demand for ethics without losing their exclusive allure?