＜Research＞Jefferies Cuts PRADA (01913.HK) TP to $62, Predicts 1H EBIT Up 12%

　　Jefferies, in its report, predicted that the earnings before interest and taxes (EBIT) of PRADA (01913.HK) -2.500 (-4.630%) Short selling $4.77M; Ratio 13.218% will outperform its peers by achieving a 12% increase in 1H24, as driven by its Miu Miu brand's sales momentum lasting into 2Q. The broker is now forecasting its Prada brand's retail sales to grow 7% (excluding FX factor) in 2Q, up from the market's general expectation of 6.3%, while its Miu Miu brand's retail sales are forecast to grow 68%, vs 67.8% in the market's expectation.

　　Overall, Jefferies expects PRADA's retail sales to grow by 16.6% (excluding FX factor) in 2Q, as compared to the market's forecast for an increase of 14.9%. Jefferies' EBIT estimation for PRADA for 1H24 is in line with the market's expectations, which is expected to reach around EUR550 million with the EBIT margin expected to increase to 22.2%.

　　Jefferies sees more significant margin leverage in 2H24, but cautions that investors are now skeptical about whether the buoyant sales will underpin its performance in 2H24. Jefferies cut the target price from $64 to $62 with a Hold rating.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-16 12:25.)

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