The bank said now is the right time to revisit the WOSG investment case and its mid-term growth potential.

"Whilst we don't believe the business should be valued as a luxury proxy, as it was during Covid, currently trading on 9x price-to-earnings we see it as being valued as a low visibility retailer, which in our view, overlooks a stable earnings underpin from the supply driven (Rolex) business," it said.

"Atop this stable base, a multitude of mid-term growth opportunities remain intact and compelling (US consolidation, US market growth, Rolex CPO, branded jewellery)."

Deutsche said that from here, it thinks the mid-term potential should come back into focus, with the January 24 warning in the rear view mirror, September's trading update reassuring with confirmed FY guidance, and evidence the Rolex pipeline remains strong.

"Whilst we don't expect to see a near-term bounce back in momentum on the demand driven side of the business, we see enough opportunities to ignite enthusiasm for the story," it said.

"With mid-term consensus margin expectations now looking more reasonably set, we view shares trading on Cal-25 9x as too cheap for a business that offers 12% earnings per share compound annual growth rate from FY26 with opportunity for growth beyond."

At 1430 BST, the shares were up 10% at 470p.