Prada: RBC Capital Markets upgrades to 'sector perform'.

(CercleFinance.com) - On Tuesday RBC Capital Markets upgraded Prada Group shares to "sector perform" from "underperform," with a new target price of 33 Hong Kong dollars, from 25 dollars previously, citing attractive potential for margin recovery.


After substantial erosion in profitability over 2014-2016, the brokerage firm sees retail like-for-like sales returning to positive territory in 2017, thanks to improving trends in China and self-help growth levers such as handbag novelties.

"Coupled with muted opex inflation, this should fuel stronger margin recovery than currently factored into consensus," RBC says about the Hong Kong-listed luxury goods company.

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