Report
Jelena Sokolova
EUR 101.80 For Business Accounts Only

Downgrading Moat Ratings for Prada and Kering From Wide to Narrow; Hermes Wide Moat Confirmed

We are transitioning coverage of three names in the luxury goods space: Kering, Hermes, and Prada. We believe that Kering and Hermes are currently richly valued (our fair value estimates are EUR 229 and EUR 316, respectively), while Prada offers 14% upside at current valuation levels.
We have downgraded our moat ratings for Kering and Prada from wide to narrow, given a higher share of shorter-life, higher-fashion items in the product mix for both companies. Nonetheless, we believe that with a hi...
Underlying
Prada S.p.A.

PRADA is engaged the luxury goods sector where it operates with the Prada, Miu Miu, Church's and Car Shoe brands in the design, production and distribution of luxury handbags, leather goods, footwear, apparel and accessories. Co. also operates, under licensing agreements, in the eyewear, fragrances and mobile telephone sectors. Co.'s products are sold in 70 countries worldwide through a network that included 540 Directly Operated Stores (DOS), and a select network of luxury department stores, independent retailers and franchise stores.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Jelena Sokolova

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