Gelonghui on October 11th | CICC released research reports stating that it maintains a 'outperform industry' rating on Prada with a target price of HK$75. Based on the continued attractiveness of the Miu Miu brand and the resilience of the Prada brand, the bank raised the revenue forecasts for 2024 and 2025 by 3% to 5.326 billion euros and 5.776 billion euros respectively. Due to the improved operating leverage, the net income forecasts for 2024 and 2025 were raised by 8% to 0.816 billion euros and 9.38 billion euros. CICC expects Prada Group's 3Q24 retail revenue to grow by 14% year-on-year at constant exchange rates (CER) and by 13% year-on-year to 1.133 billion euros in financial report terms, affected by a 1 percentage point unfavorable exchange rate impact. The slowdown in retail revenue growth rate year-on-year (+14%) compared to 2Q24 (+18%) is mainly due to the slowdown in growth in the Asia region, as the Greater China region is negatively affected by weakened consumer confidence, and in Japan, the sales growth rate has slowed down due to the stronger Japanese Yen leading to reduced product attractiveness. CICC believes that Prada Group is in a favorable position within the luxury goods industry and is expected to outperform its peers in 2024.