Tod's: Credit Suisse even more negative on stock

(CercleFinance.com) - Credit Suisse has become slightly more negative towards the Tod's share, with the Italian shoe maker having published half-mast interim results.

Recommending investors sell the share ("underperforman" rating), analysts have cut their corresponding target price from 32 euros to 25 euros, which gives it downside potential of around 45%.

On a like-for-like basis, the contraction Tod's sales accelerated, reaching 6% in Q2, which is double analysts' expectations, mainly due to the sharper-than-expected fall in wholesale sales. "Turnaround strategy yielding poor results despite investments," the broker comments. Credit Suisse has also slashed its 2019 to 2021 EBITDA estimates by about 33%.

Analysts also point out that Tod's shares are trading at a 2020 EV/EBITDA multiple of 22x, which is a very high valuation, as the luxury sector as a whole is trading at a multiple of just 12x.



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