Jefferies downgraded Watches of Switzerland from ‘buy’ to ‘hold’ as the stock’s recent strong rerating has left limited room for further gains. Despite raising the price target to 740p, the upside is only about 4% from current levels. The luxury watch retailer has benefited from strong US demand and price hikes, but pricing momentum is fading and the UK market remains challenging without duty-free shopping benefits. Jefferies raised earnings forecasts but warned of risks including competition, tariffs, and shifts in luxury demand.
