On Friday, H&M was one of the biggest risers on the STOXX 600 index, in the wake of a note from RBC, which believes that the ready-to-wear group has a number of levers at its disposal to outperform the market.

RBC, which considers the stock's valuation attractive, raised its opinion from "perform in line with the sector" to "outperform", with a price target raised from SEK 190 to SEK 200.

In a note, the Canadian broker considers that the recent improvement in the garment maker's product offering could enable it to maintain a favorable sales growth trajectory.

The broker also cites the adoption of a plan to optimize store floor space, potential further cost reductions and an increase in profit margins due to the normalization of raw material prices and problems linked to logistics and transport.

Shortly before 2:00 pm, the stock was up 1.8%, posting the second-highest rise on the OMXS30 index of Swedish blue-chip stocks.

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