Citi: Raised Prada (01913) target price to HK$41.5 to maintain “neutral” rating

The Zhitong Finance App learned that Citi released a research report saying that the Prada (01913) brand same-store sales trend improved in the second quarter, Miu Miu continued to normalize growth, and the Group's EBIT profit margin showed resilience after deducting the influence of foreign exchange and Versace. The bank raised Prada's target price from HK$38 to HK$41.5, maintaining a “neutral” rating.

The bank generally maintained Prada's sales forecast for the 2026-2028 fiscal year, with sales forecasted increases of 4.4%, 4.1% and 4.1%, respectively, based on fixed exchange rates. Since the dilution effect of foreign exchange and the merger of Versace was greater than expected, Citi lowered its gross margin forecast, lowered its EBIT forecast for the 2026-2028 fiscal year by 2%, 3%, and 3%, respectively, and lowered its earnings per share forecast by 3%, 5%, and 4%, respectively. The bank expects EBIT profit margins for the 2026-2028 fiscal year to be 19.6%, 20.1%, and 20.8%, respectively. If Versace's influence is deducted, the profit margin will expand by 10 basis points.