Lyon upgraded 00178.HK to "buy" from "sell", bullish on the group's strong cash flow and dividend, and raised its target price sharply from 2.70 yuan to 4.10 yuan, equivalent to 13 times forecast earnings. At the same time, it has a "buy" rating of I.T (00999.HK) with a target price of 3.60 yuan. It is believed that the challenges in the Hong Kong market have been reflected, coupled with the strong momentum of the Group's business in China and Japan.

Lyon maintained its "sell" rating on 00330.HK, lowering its target price from $6.85 to $6.15 as the Group's business focus was in Europe, where the retail market remained weak and the Group's Asian business was also difficult.

In terms of watch stocks, it upgraded 03389.HK to "buy" from "sell" and raised its sales forecast by 4 per cent, as the group is a mid-range retailer and covers the mainland market, raising its target price from Rmb0.83 to Rmb1.10, Lyon said. However, the bank maintained the "sell" rating of 00887.HK and 00398.HK, where market conditions remained weak as the two companies focused on expensive luxury goods.