CICC: Lower PRADA (01913) target price to 65 Hong Kong dollars, expecting accelerated revenue growth.

CICC released a research report stating that PRADA (01913) had first quarter revenue of 1.428 billion euros, a 3% organic year-on-year growth, in line with market expectations. The bank believes that in the overall downturn of the industry, the group's moderate growth reflects its continuous increase in global market share. Due to the adjustment of earnings per share forecasts and industry valuations, the bank has lowered the target price by 13.3% to 65 Hong Kong dollars, maintaining an "outperform" rating. The bank expects the group's revenue growth to gradually accelerate by the end of this year, mainly due to the low base, the popularity of refined taste styles, and the net increase of Miu Miu stores and the opening of Prada select flagship stores. However, the positive factors mentioned above may be partially offset by the controllable decline in the transitional period of the Versace brand. Taking into account the impact of the Middle East conflict, the bank has lowered its revenue forecasts for PRADA in 2026 and 2027 by 2% to 6.45 billion euros and 6.764 billion euros respectively, and net profit forecasts by 2% to 817 million euros and 898 million euros respectively.