1044 GMT - Luxury valuations look about right after a rally in the latter half of last year, Bank of America says, lowering its ratings on three European luxury names. "We are hopeful that cyclical and secular tailwinds will drive revenue growth of 5%" this year, BofA's analysts say, though operating margins may stay flattish as luxury brands reinvest and higher currency andraw-material costs bite, they say. "The sector doesn't currently feel mispriced, unless there is a stronger revenue rebound of which visibility is low," the bank says. BofA lowers its ratings on Cartier-owner Richemont and smaller Italian house Brunello Cucinelli and Ermenegildo Zegna to neutral, lifting British retailer Watches of Switzerland to buy. (joshua.kirby@wsj.com; @joshualeokirby)

(END) Dow Jones Newswires

January 16, 2026 05:44 ET (10:44 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.