HSBC Global Research lowered its target price for Samsonite Intl SA (01910) to HK$38 from HK$39, and reiterated its "buy" rating.
After a painful episode of the group countering a short seller report and replacing its CEO in the process, many questions have been asked and answered and both the company and investors are likely keen to focus on the reality of the business, said the research house.
HSBC believes trust could take a while to come back.
It believes 2Q results should actually start to show that operating leverage after 1Q margins were affected by retail expansion, e-Bags consolidation (which is margin dilutive), and a one-off advertising push, notably for the American Tourister Ronaldo campaign.
HSBC trimmed its underlying estimates by about 3% for this year and next, mostly on currency, and have also factored in the one-off non-cash charge of US$53m to write off the remaining deferred financing costs associated with previous existing credit facilities.
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