Goldman Sachs maintains a "buy" rating on PRADA (01913) and raises the target price to HKD 78.1.

Goldman Sachs released a research report stating that they maintained a "buy" rating for PRADA (01913) and raised the target price from HK$68.5 to HK$78.1. The bank has raised its pre-tax profit forecast for PRADA in the 2025 and 2026 fiscal years by 4%; the basic sales growth expectations remain essentially unchanged. In addition, the pre-tax profit margin forecast for the 2025 fiscal year has been raised from 23.8% to 24.1%; and for the 2026 fiscal year, it has been raised from 24.6% to 24.9%. The bank believes that the main positive factors for PRADA's performance in the 2024 fiscal year are market share growth and profit margin expansion, reflecting the strong performance of the Prada main brand and Miu Miu in brand momentum. Goldman Sachs mentioned that Prada's direct sales growth in the 2024 fiscal year was 4%, performing excellently compared to its peers; as for Miu Miu, its basic sales growth in the 2024 fiscal year was 93%, reflecting the brand's current expansion phase and its relatively small base, although the growth mainly reflects the expansion of basic sales volume. The bank cited PRADA management's plan to achieve double-digit retail store expansion, supporting its forecast of a 21% increase in retail sales for the PRADA 2025 fiscal year. Overall, the bank has raised its pre-tax profit (EBIT) forecast for the PRADA 2025 fiscal year by 4%, and continues to believe that there is room for the group to gain market uplift and re-rating.