Hennes & Mauritz gets double-upgrade at JPMorgan Cazenove

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Hennes & Mauritz , the Swedish clothing chain, got a double upgrade to overweight at JPMorgan Cazenove, which put on a SEK225 price target. “In the last couple of years H&M has been heavily investing to restore topline growth and stop margin and cash flow pressure. The change in momentum has become obvious in our view in the second half of 2019, with like-for-like also in physical stores turning positive, margins stabilizing and cash flow finally improving and covering the large dividend,” the broker said. “While there could likely be further stock volatility in the next days/weeks due to the current Covid-19 situation, and H&M is clearly not immune especially if the disease spreads significantly in Europe, we see the underlying fundamentals as stronger and hence would see short term weakness as an additional opportunity to buy the shares.” H&M shares slipped 2.2% to SEK182.52, as stocks across Europe slipped.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.