09:56 AM EDT, 05/18/2026 (MT Newswires) -- Compagnie Financière Richemont (CFR.SW, CFR.JO) remains Bernstein's "best idea"stock recommendation in the second quarter amid expectations that the company would see an improvement in its growth outlook in China.

"In chasing rising gold prices, Chinese consumers have allocated a greater share of wallet to gold and gold jewellery, at the expense of less 'gold-heavy'Western luxury brands. Laopu Gold has been the most prominent benefactor of this trend, Richemont a probable loser,"analysts said Monday. "This effect seems to be waning: the gold price has corrected significantly; recent changes to VAT rules in Mainland China has made gold jewellery less attractive; competition in the heritage, fixed-price gold jewellery space is also increasing."

The research firm also noted that the Swiss luxury goods group's jewelry brands have seen a recovery in "mind-share"against Chinese jewelers during the first half of 2026.

"Richemont has performed strongly despite China in recent quarters - its prospects should improve as the Laopu Gold craze normalizes. Local price increases have also helped close regional price gaps, allowing Richemont to better capture robust organic demand amid strong price inelasticity,"analysts added. "In the longer-term, growing demand for heritage jewellers points to an increasingly sophisticated Chinese consumer, a structural opportunity for Richemont too."

Richemont's stock is rated outperform, with a price target of 200 francs.