Despite an attempt to push higher, Watches of Switzerland (LON: WOSG) shares fell almost 1% on Monday. However, analysts at RBC Capital are bullish on the stock…

RBC’s Richard Chamberlain initiated coverage of Watches of Switzerland with an Outperform rating and 1,100p price target in a note Monday, labelling the company a “revenue growth-led investment story” that continues to trade at an attractive valuation.

WOSG shares are, however, down 8% in 2023 and more than 26% in the last 12 months, even though demand for luxury brands and items has remained robust.

Chamberlain said Watches of Switzerland offers “coveted” brand relationships and that with over 50% of revenue generated by waiting lists, the company has a degree of downside protection.

WOSG recently stated it will announce its Q4 and full-year trading update for the 13 and 52 weeks ended April 30 on Wednesday, May 17.

In the company’s Q3 update, it told investors that the strength of the luxury watch and jewellery categories, and the supply/demand dynamics of luxury watches and client registration lists, continue to support long-term sustainable sales growth.

WOSG guided for FY23 revenue to come in between £1.5 billion and £1.55 billion, with adjusted EBIT expected to be between £163 million and £175 million.

By Sam Boughedda