Prada SpA
01913: XHKG (HKG)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
HK$95.00 | Xkxzkdn | Fdvvrhprq |
Prada Delivers Strong Growth, Improved Profits, While Rationalizing Wholesale Distribution
We are increasing our fair value estimate for narrow-moat Prada to HKD 36.50 from HKD 33.50. Our increase stems from time value of money, currency moves, and our more favorable view on near-term profitability development (our long-term expectations for low-20s operating margin remain intact). The recent sell-off has left Prada shares trading approximately in line with our new fair value estimate.