Jefferies cuts Hermes to 'hold', saying growth is 'disproportionately leather-driven'

** Jefferies downgrades French luxury goods maker Hermes to "hold" from "buy", citing concerns over its possible over-reliance on leather goods after the shares reached the broker's price target

** It reiterates the PT of 2,460 euros ($2,872.30) and says it is "struggling to see valuation expand back to 60x peaks", with the stock trading at a 2026 price-to-earnings ratio of 50x

** Jefferies says investors will be focused on whether growth becomes disproportionately reliant on the leather goods and saddlery division, which it expects to outpace non-leather categories

** The brokerage trims its earnings per share estimates for 2026 by a tenth due to foreign exchange headwinds, placing its forecasts around 3% below market consensus

** A more meaningful re-acceleration in growth in the non-leather divisions could help build a case for a return to peak multiples, it adds

** Out of 24 analysts that cover Hermes, 14 rate the stock "strong buy" or "buy", ​eight "hold" and two​ "strong sell" or "sell" - LSEG data

($1 = 0.8565 euros)