[ET Net News Agency, 25 September 2020] HSBC Global Research lifted its target price
for Samsonite International (01910) to HK$12 from HK$11 and maintained its "buy" rating.
The research house said domestic travel has picked up in some key markets like the US
and mainland China, but this doesn't do much for the Samsonite group as luggage purchases
are more often triggered by trips abroad.
HSBC is not confident in an imminent turnaround given the current lack of visibility and
it is not factoring in normalization before at best 2H 2021.
Separately, HSBC believes that scale matters greatly and that while the group will have
suffered from the COVID-19 induced crisis, competitors will have fared even worse, with
some likely to struggle financially. (KL)