Moncler: growth ahead; UBS upgrades to buy
(CercleFinance.com) - This morning UBS has upgraded its neutral rating on the Italian luxury group Moncler to buy.
While trimming its 12m target price for the share from 39 euros to 36 euros, this still represents upside potential of 18%.
Having fallen by 30% since its peak in June, the share of the specialist in upmarket down jackets has, analysts say, fallen back to levels at which investors should buy the stock: UBS sees "attractive entry point into the only growth story in the sector underpinned by space expansion." Indeed, the Italian group is expected to continue opening new and expanding existing stores.
According to UBS, Moncler would be able to increase its sales by one billion euros over the next five years, reaching 2.5 billion euros by 2023. This implies like-for-like sales growth of 6% p.a., while the market is only pricing in 2%.
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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.
While trimming its 12m target price for the share from 39 euros to 36 euros, this still represents upside potential of 18%.
Having fallen by 30% since its peak in June, the share of the specialist in upmarket down jackets has, analysts say, fallen back to levels at which investors should buy the stock: UBS sees "attractive entry point into the only growth story in the sector underpinned by space expansion." Indeed, the Italian group is expected to continue opening new and expanding existing stores.
According to UBS, Moncler would be able to increase its sales by one billion euros over the next five years, reaching 2.5 billion euros by 2023. This implies like-for-like sales growth of 6% p.a., while the market is only pricing in 2%.
Copyright (c) 2019 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.