Morgan Stanley continues to expect PRADA's profitability to outperform the market, noting the group's positive growth outlook.
According to Zhito Finance APP, Morgan Stanley released a research report stating that the growth potential of the Prada brand remains strong in the foreseeable future, maintaining a 'Shareholding' rating for PRADA (01913), with the Target Price raised from HKD 67 to HKD 69. The firm continues to expect PRADA's profitability to outperform the market, highlighting the group's positive growth prospects, mainly benefiting from the impressive performance of its brand Miu Miu.
The report states that the forecast for PRADA group's organic sales growth in the fourth quarter, calculated at constant exchange rates (CER), has been raised from 9.4% to 12.9%, compared to the market expectation of an increase of 11.4%. The group's retail revenue CER growth forecast has been adjusted from 10.8% to 14%, and the EBIT forecast for the second half of this year has been slightly increased to EUR 0.677 billion.