UBS: Target price for Samsonite (01910) “Buy” rating reduced to HK$27.9

The Zhitong Finance App learned that UBS released a research report saying that the third-quarter results announced by Samsonite (01910) in the middle of next month are expected to weaken due to factors such as price competition in the Indian market and the slowdown in growth in the Western region. The bank reduced the company's target price from HK$29.4 to HK$27.9, with a “buy” rating.

UBS lowered its revenue forecast for this year to 2026 by 1% to 2%. It is expected that there will be a more obvious slowdown in the second half of this year. Furthermore, the degree of operating deleveraging that exceeds expectations and unfavorable sales portfolio transfers will also cause the bank to lower its profit margin forecast. The bank lowered its adjusted EBITDA profit margin forecast for this year to 2026 by 20 to 30 basis points to 18.2% to 18.6%. The adjusted net profit forecast for the current year and next two years was reduced by 2% to 4% compared to the previous year.