Bank of America Securities: Lowering SAMSONITE (01910) target price to HK$20, reaffirming "buy" rating.

Bank of America Securities released a research report stating that SAMSONITE (01910) is continuously affected by inflation pressure, impacting consumer sentiment in its main markets. In the second quarter, excluding the impact of exchange rates, sales, adjusted EBITDA, and net profit after tax will decrease by 1%, 20%, and 25% respectively compared to the previous year. The target price has been lowered from HK$22 to HK$20, with a reiterated "buy" rating. The bank has adjusted the company's adjusted net profit forecast for 2026-2027 to $250 million and $280 million, respectively, reflecting lower sales and profit margin expectations. However, they believe that the company's brand holds a leading position in its product categories and that its valuation is attractive. They also believe that falling oil prices could slightly ease household budget pressures, and as demand gradually recovers, the group's sales will resume positive growth in the second half of 2026.