Salvatore Ferragamo: Aurel BGC cuts target price.
(CercleFinance.com) - Aurel BGC has reinstated its "hold" rating on Salvatore Ferragamo, although has cut its target price for the share from 25 euros to 22 euros, in particular to take into account the group's new EBITDA forecasts for 2017-2020 (on average -17% compared to its initial estimates).
According to the broker's research team, the Italian luxury group has the resources to make a major turning point in its history, even though the execution of different strategic initiatives will inevitably weigh on its results in the near term.
The broker thinks that a successful rejuvenation of the brand's image and the optimisation of its product offer could release a considerable growth potential in the medium-to-long term, although that the visibility on the group's 2018 results remains very weak at this stage.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
According to the broker's research team, the Italian luxury group has the resources to make a major turning point in its history, even though the execution of different strategic initiatives will inevitably weigh on its results in the near term.
The broker thinks that a successful rejuvenation of the brand's image and the optimisation of its product offer could release a considerable growth potential in the medium-to-long term, although that the visibility on the group's 2018 results remains very weak at this stage.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.