[ET Net News Agency, 3 December 2018] Morgan Stanley raised its target price for
Samsonite International (01910) to HK$28 from HK$25 to reflect improvement in market
sentiment and maintained its "equal-weight" rating.
The research house said pressure on stock should be partially lifted thanks to outcome
of trade talks. While for now the 10% tariff remains, Morgan thinks the constructive
messages from the trade talks and the potential removal of additional tariffs for 2019
should restore the valuation significantly for the near-term.
Morgan expects a 3-4% sales growth in constant currency and 7% EPS growth for 2019,
slower than its organic growth in 2015-17. Sales trends in China, South Korea and the US,
representing half of its business, remain weak in 4Q to date. (KL)