Moncler: UBS no longer a buyer.
(CercleFinance.com) - UBS has downgraded its recommendation on shares of Moncler, the Italian high-end down jacket manufacturer.
The buy recommendation has been downgraded to neutral, with the 12-month price target remaining at 21.50 euros.
In this context, UBS analysts have met with the management of Prada, Moncler and Salvatore Ferragamo. The strong rebound of the Gucci brand, owned by Kering, was highlighted during these meetings. UBS has however identified that the large luxury-brand groups, such as Kering and LVMH, seem to manage their digital image with more ease than the small mono-brand companies.
Certainly, Moncler remains in UBS's view a solid growth business with potential that is far from running out. However, the company is differentiated from other Italian luxury shares because of the way in which it optimises its boutique network.
Meanwhile, the Moncler share, which has gained over 40% in one year, appears to already reflect these favourable prospects, hence UBS's change of tack.
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.
The buy recommendation has been downgraded to neutral, with the 12-month price target remaining at 21.50 euros.
In this context, UBS analysts have met with the management of Prada, Moncler and Salvatore Ferragamo. The strong rebound of the Gucci brand, owned by Kering, was highlighted during these meetings. UBS has however identified that the large luxury-brand groups, such as Kering and LVMH, seem to manage their digital image with more ease than the small mono-brand companies.
Certainly, Moncler remains in UBS's view a solid growth business with potential that is far from running out. However, the company is differentiated from other Italian luxury shares because of the way in which it optimises its boutique network.
Meanwhile, the Moncler share, which has gained over 40% in one year, appears to already reflect these favourable prospects, hence UBS's change of tack.
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.