Tod's: UBS reiterates 'sell'
(CercleFinance.com) - UBS reiterates its "sell" rating on Tod's, while inching up its target price for the share from 46 euros to 48 euros, saying that the market is over-optimistic about a rebound in like-for-like sales.
In a research report entitled "Will the new strategy be sufficient to kick start like-for-like growth?", the broker points out that the Italian shoemaker's current digital presence and e-commerce base is too low.
"We believe it will take a longer time than the market has factored in to deliver sales improvements," UBS writes in the report.
However, without at least low single digit like-for-like growth in 2018, margins will likely contract, UBS warns.
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