Barclays and Deutsche Bank Downgrade Luxury Sector on China Woes

(Bloomberg) — Luxury-goods companies face the risk of disappointing sales growth in China that will weigh further on their stock prices, Barclays Plc and Deutsche Bank AG said, cutting their ratings on the industry.

Barclays analyst Carole Madjo reduced her recommendation on France’s LVMH to equal-weight from overweight, and the firm downgraded its view on the sector to neutral from positive. Deutsche Bank’s European equity strategists did the same for consumer products because of the luxury companies’ exposure to China.