Hennes & Mauritz AB Class B

HM B: XSTO (SWE)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	SEK 281.00	Ndck	Hdqrczkm

H&M Sales and Profits Rise as Easy Comparison Base Offsets Impact of War and Inflation

Jelena Sokolova

Jun 29, 2022

We are maintaining our fair value estimate of SEK 179 for no-moat Hennes & Mauritz, or H&M, as the company reported a strong increase in sales and profitability in the second quarter despite the suspension of operations in Russia and Ukraine and inflationary pressures. Shares look attractive at current levels with around 40% upside to our fair value estimate. The company announced a buyback of SEK 3 billion, equivalent of 1.5% of market cap, which we view favorably given its attractive share price and SEK 16 billion in net cash on the balance sheet.

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