Bank of America Securities: Upgrades PRADA (01913) rating to "Buy" with a target price raised to HK$65.

Bank of America Securities released a research report stating that it has upgraded its rating on PRADA (01913) from "neutral" to "buy", with a target price of 65 Hong Kong dollars, up from 60 Hong Kong dollars. The bank believes that the group can continue to outperform the luxury goods industry while establishing Miu Miu as a leading brand within the industry, leveraging its brand popularity to drive sustainable growth. The bank stated that it has increased its forecast for the company's EBIT for 2025 to 2026 by 7%, believing that based on successful past cases of brands transitioning into fashion leaders, the market has underestimated Miu Miu's significant potential for profit growth. The report mentioned that PRADA's stock price has risen by approximately 24% this year, but its valuation is only equivalent to a forecasted P/E ratio of 17 times, which is a discount of 10% compared to industry peers. With an estimated three-year annual compound growth rate of 16% in earnings per share, higher than the industry's 10%, the bank believes the stock is overly undervalued.