Citigroup released a research report sayingJeopardymay62022Due to the stronger-than-expected retail sales in Europe and Japan and the strong growth of Miu Miu, Prada's sales in the first quarter of 2024 were about 2% higher than expected, so the company raised its forecast for the target price from 62.Jeopardymay62022.5 to HK $65Jeopardymay62022.5 Hong Kong dollars, maintaining a "neutral" rating.
Retail sales in April were in line with the first quarter of 2024, and the bank raised its group revenue growth forecast for fiscal 2024 by 13% at a fixed recovery rate and remained roughly unchanged for fiscal 25 because of higher Miu Miu retail assumptions, the report said. Coupled with the reduction of adverse factors in foreign exchange, this promotesJeopardymay62022The company's group revenue increased by about 3 per cent in fiscal 2024 and 2025.
The bank said it raised its gross margin forecast for this year and next year by 20 and 10 basis points to 80.6 per cent and 80.7 per cent respectively, mainly due to improved channel mix and operating expenses up 11 per cent and 6 per cent in fiscal years 2024 and 2025, respectively. this will lead to a forecast increase of about 4 per cent in earnings before interest and tax and earnings per share for fiscal years 2024 and 2025. Given that the medium-term target set in November 2021 has been achieved in 2023, the bank expects a strategic or financial update later this year. In addition, dual listing is "on the agenda, but not a priority".