UBS Global Research lifted its target price for Prada SpA (01913) to HK$30.5 from HK$27.9 and maintained its "neutral" rating.
The research house said Prada's 1H results missed on revenues and EBIT, however, the focus was on the conference call which struck a very confident tone and showed a clear acceleration in brand momentum.
Notably, July sales are down high single-digit percent globally, comparing favourably with peers and broadly in line with stronger players such as LVMH and Kering.
Given the wholesale rationalisation and termination of in-store sales, gross margin is rising structurally to 75% from 2021 onwards. This causes a material increase in UBS's outer-years EPS estimates, while FY2020 EPS forecast declined due to the EBIT miss.
etnet榮獲HKEX Awards 2023 「最佳表現證券數據供應商」大獎► 了解詳情
