Watches of Switzerland (LON: WOSG) shares gained in early Tuesday trading after the stock was raised to Buy from Neutral at Goldman Sachs.
The firm’s analysts assigned the stock an 800p price target, as revealed by TheFly. WOSG shares took a tumble recently following news that Rolex would buy luxury watch retailer Bucherer for an undisclosed amount.
The stock currently trades at around 616.5p, up 2.88% at the time of writing on Monday. However, it is down 25% so far in 2023.
Despite Rolex’s move into retail, Goldman Sachs analysts believe there is still “plenty of opportunity” at Watches of Switzerland.
Luxury watch distribution “remains highly fragmented,” according to the investment bank, although brands continue to work on simplifying networks across a lesser number of operators, benefitting larger companies such as Watches of Switzerland.
By Sam Boughedda