Prada: Credit Suisse initiates coverage with 'buy' rating

(CercleFinance.com) - Credit Suisse has started to monitor the share of the Italian luxury group Prada, on which it has a buy rating ("outperform").


The broker has a target price of 36 dollars for stock that is mainly listed on the Hong Kong Stock Exchange, which suggests upside potential of over 25%.

"Following four years of declines," Credit Suisse says, "we expect a gradual recovery in sales and a rebound in margins from near historical lows," with the group's operating margin expected to increase from 11.5% in 2017 to 16% in 2020, it forecasts.

According to Credit Suisse, with luxury stocks having been battered in the market, the Prada share's 35% drop since May's peaks "offers an attractive entry point".



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