On Friday, Morgan Stanley downgraded its recommendation on H&M shares from 'weighted in line' to 'underweight', with a price target lowered from SEK 180 to SEK 125.

In a study of the European retail sector, the financial intermediary expressed concern about the Swedish clothing group's limited prospects for sales growth, as well as the downside risk to margins.

From his point of view, hopes of a recovery in margins - at the origin of the 50%-plus rebound in the share price in 2023 - are running out of steam, particularly under pressure from the company's rebates.

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