Tod's: hit by a broker downgrade

(CercleFinance.com) - The share of Italian luxury footwear maker Tod's is down 2.
2% in Milan today, hit by Jefferies downgrading the stock from "hold" to “underperform,” having cut its corresponding target price reduced by 19% to 34 euros.

The broker now believes that the impact of revenue stagnation on margins will be greater than expected in 2018-2020 according to its assumptions. It sees challenged growth in a slowing market, with less leverage on costs.

"The attempt to redress this trend will hurt profitability disproportionately," the broker warns, adding that "this may change if Tod's finally succeeds, but not in the short term".



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