Salvatore Ferragamo: Stifel reduces TP

(CercleFinance.com) - Stifel maintains its 'hold' rating on Salvatore Ferragamo shares, while reducing its target price for them from E11.
5 to E10.3, after reducing its 2024-25 sales and EBIT projections by an average of 7% and 22% respectively.

Regarding its trading update on 9 May, the broker anticipates a 12% decline in Q1 organic sales, with weak demand in retail distribution in all regions except Europe, and a sharp contraction in the wholesale channel.

Stifel adds that the Italian luxury footwear house's share price is trading at 2024 and 2025 P/Es of around 70x and 50x on its new estimates, which it considers expensive compared to the sector's respective 25x and 22x.


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