Macquarie: Lowering Prada's (01913) target price to HK$60 to “outperform the market”

The Zhitong Finance App learned that Macquarie released a research report saying that Prada (01913)'s sales for the first half of the year increased 9% year-on-year based on a fixed exchange rate, which is roughly in line with the bank's forecast. Due to the non-recurring costs of acquiring Versace, net profit rose 0.6% year over year, which is 7% different from the bank's forecast. The bank lowered Prada's net profit forecast for each year from 2025 to 27 by 7.6%, 7.1% and 6.6%, respectively, to take into account first-half results and brand investment. The target price was reduced by 8% from HK$65 to HK$60, outperforming the market.

The report cites management's expectation that by the end of August, overall tourist traffic in Japan and Europe will stabilize year over year. The company will prioritize enhancing brand value, and believes there is still room for improving profitability through operating leverage. Management believes that MiuMiU's penetration rate in many countries is still low, and there is still potential for further improvement in terms of categories and combinations.