Narrow-Moat Prada's 1H 2017 Performance Underwhelms but Not Beyond Repair; Shares Undervalued
We retain our narrow moat rating after Prada reported results that missed our implied full-year forecasts and consensus first-half 2017 expectations. Â We adjust our forecasts to reflect weaker near-term performance and reduce our fair value estimate to HKD 30 from HKD 32 per share. Our medium-term forecast implies 5.7% average top-line growth, driven by same-store sales and a 17.7%Â operating margin. We see shares as currently undervalued.In first-half 2017, revenue declined by 5.9% on a constan...
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.
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.
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