The Swatch Group: The Price Recovery Can Continue

The Swatch Group AG has seen exceptional price performance YTD, rising by 29% YTD to touch one-year highs, compared to a 9% drop in the S&P Global Luxury Index. Early signs of the forecast luxury sector recovery are already playing out as peers like LVMH see a small uptick in revenues, supported by the Asia ex-Japan market. The stock's dirt-cheap market valuations also work in its favour, while the revival of the luxury market raises hopes of revenue growth and possible margin expansion.