Here are @lucas.mattsson’s pre-comments as H&M releases its Q3 results next Thursday. 
We have made slight forecast adjustments to H&M’s short- and medium-term forecasts due to a slower-than-expected recovery. While we acknowledge that external factors affecting the gross margin have developed positively, we believe short-term drivers will remain weak, with concerns about revenue development and an uncertain business environment. Since our last update after the Q2 report, the share price has risen by approximately 15%, which has increased absolute valuation multiples (2025e P/E: ~24x) and left limited room for disappointment. As a result, we are changing our recommendation to Sell (previously Reduce), but reiterate our target price of SEK 130 for the share.