Ferragamo: Credit Suisse cuts target price
(CercleFinance.com) - Credit Suisse confirms its "Underperform" recommendation on the Ferragamo share, having cut its corresponding target price to 11 euros (from 15 euros).
"Despite FY19 profit coming broadly in line with our forecasts, we cut our FY20e organic sales and operating profit forecasts by 13% and 64%, respectively, chiefly on COVID-19 disruptions," the broker says.
Analysts have adopted a cautious attitude about the recovery in demand and have reduced their 2021 forecasts for sales by 3% and operating profit by 7%.
Management expects sales to fall by 25% to 33% in sales in Q1. "This should send a negative signal to the luxury sector where we believe some of the most pessimistic sector sales forecasts are for a 20% drop".
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
"Despite FY19 profit coming broadly in line with our forecasts, we cut our FY20e organic sales and operating profit forecasts by 13% and 64%, respectively, chiefly on COVID-19 disruptions," the broker says.
Analysts have adopted a cautious attitude about the recovery in demand and have reduced their 2021 forecasts for sales by 3% and operating profit by 7%.
Management expects sales to fall by 25% to 33% in sales in Q1. "This should send a negative signal to the luxury sector where we believe some of the most pessimistic sector sales forecasts are for a 20% drop".
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.