Analysts at Goldman Sachs and UBS have issued their first sell ratings on Hermes International SA (HESAY) in more than a year, arguing that the Birkin bag maker's revenue growth will fall short of market expectations and that its shares will continue to underperform the broader market.

Goldman analysts led by Erwan Rambourg wrote that the company's "era of consecutive quarters of double-digit year-on-year growth is clearly over." The slowdown stems mainly from weakness in non-leather goods categories, which cater to a broader base of brand-seeking consumers. Goldman set its price target on Hermes at EUR1,350; the stock closed at EUR1,299.50 last Friday.

UBS analyst Zuzanna Pusz downgraded Hermes from neutral, highlighting rising supply of Hermes products in the secondary market, a growing share of non-quota bags, and a normalization of returns in the resale market, all of which make demand for the products more driven and cyclical in nature. She added that market expectations remain anchored to growth forecasts for the leather goods segment, but the credibility of such forecasts is steadily declining. UBS sharply cut its price target on Hermes to EUR1,168 from EUR1,695.