UBS: Raises Samsonite (01910.HK) target price to HK$16.3, rating "neutral"

Zhito Financial APP learned that UBS released a research report stating that it slightly raised its revenue forecast for Samsonite (01910.HK) by 1% to reflect better-than-expected sales trends in North America in the second quarter; however, it lowered its adjusted EBITDA profit margin forecast by approximately 110 basis points, as the deleveraging in the first quarter was more pronounced than originally anticipated. The bank correspondingly lowered its EPS forecasts for 2025 to 2027 by 8%, 2%, and 2% respectively. But due to the decrease in the weighted average cost of capital forecast from 9.9% to 9.5%, the target price was raised by 9% from 15 Hong Kong dollars to 16.3 Hong Kong dollars, with a 'Neutral' rating, as the current price already reflects low visibility of profitability. The report mentioned that recent trade agreements have reduced the long-tail risks of tariff impact, but uncertainties remain high. Management mentioned some relief measures, including reducing orders to high-tariff areas, raising prices on certain products, and negotiations with suppliers.