＜Research＞CLSA Lowers PRADA (01913.HK) TP to $65, Rates Outperform

　　A recent CLSA report reveals that PRADA (01913.HK) -0.400 (-0.755%) Short selling $1.69M; Ratio 21.818% , which will announce its interim results on 30 July, is expected to report a 12% YoY increase in 2Q sales on a constant FX (cFX) basis, with Prada and Miu Miu brand retail sales expected to rise by 5% and 60% YoY cFX. By region, the broker expects Japan to be the strongest performing market.

　　CLSA expects the company's interim operating margin to improve by 20bp YoY to 22.2% benefiting from positive operating leverage, but partially offset by the impact of FX and raw material cost on gross profit margin. The broker expects the company's operating leverage to be more explicit in 2H24, with cost optimisation and resilient sales contributing to a 1 ppt improvement.

　　Related NewsJefferies Cuts PRADA (01913.HK) TP to $62, Predicts 1H EBIT Up 12%

　　Raising its sales and net profit forecasts for 2024 by 2% and 3%, the broker maintains an Outperform rating on the stock and likes PRADA's outperformance versus its peers in 2024. It lowered the target price to $65 from $69, reflecting weaker sector sentiment.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-19 12:25.)

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