According to the report released by Morgan Stanley, based on the strong performance of Prada (01913) in the second quarter and the improvement of operating leverage, it has raised the profit forecast for the years 2024 to 2026 by 2.7%, 6.8%, and 6.2%, raised the target price by 2% to HK$70, and maintained its 'outperform' rating. The next catalyst is expected to be the penetration rate of its Miu Miu brand in markets outside of Asia.

The report stated that due to fixed exchange rates and outperforming its peers, Prada achieved a year-on-year increase in sales of 18% in the second quarter. The strong sales trend has continued in July, and the company's operating profit and net profit for the first half of the year are both better than the bank's expectations by 3% and 8%, respectively. Management expects even stronger operating leverage in the second half of the year.