Salvatore Ferragamo: Exane downgrade weighs on shares.
(CercleFinance.com) - Shares in Italian luxury fashion house Salvatore Ferragamo are down sharply on Tuesday, with brokerage firm Exane BNP Paribas downgrading its rating on the stock.
Ferragamo shares were down 2.7% at around 23.5 euros in late morning trading, being the worst performer on Milan's FTSE MIB blue chip index.
Not only has Exane BNP Paribas downgraded its rating to "neutral", but it has also reduced its target price on the stock to 24 euros, saying that it cannot see any further upside potential for shareholders in the foreseeable future.
"We get the impression that Salvatore Ferragamo's plan today is 'we will do more of the same, but better', and that its current stage in the execution is 'we still have a lot of work to do'," Exane's Luca Solca wrote in a report.
The analyst nevertheless points out that retailers don't seem to be reporting early signs of a brand revival.
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