Shortly before 3:00 p.m., shares in the maker of the iconic Birkin bags and famous silk scarves were down nearly 0.8% at 1,594.5 euros, while the CAC 40 index slipped 0.6% over the same period.

In a sector report titled 'Never a Dull Moment in Luxury', HSBC announced it has lowered its price target on the stock to 1,661 euros, down from 2,300 euros previously.

The British bank justified its decision by noting that the group posted a first quarter below expectations, impacted more heavily than anticipated by the decline in European tourist flows. This weakness came as a surprise, given the company's previous claims of being less exposed to tourism than its peers.

HSBC nevertheless maintains its 'buy' rating on the stock, still considering Hermès to be one of the most resilient players in the sector.

Barclays also lowers its sights

For its part, Barclays reduced its price target from 2,310 to 1,700 euros, while reiterating its 'equal weight' rating.

In its note, Barclays argues that Hermès' very high valuation is predicated on the assumption of growth significantly outperforming the sector, but that the latest results undermine this thesis.

The bank highlights three primary investor concerns: doubts regarding the resilience of the long-term growth model, a lack of visibility on catalysts capable of supporting the share price in the short term, and a valuation premium deemed excessive compared to other luxury groups.

With growth expected at 8% over the medium term, compared to 4% for the sector as a whole, Barclays believes that market consensus will likely have to revise its expectations downward.