MONRY - Moncler Is A Gem In The Luxury Segment
2024-06-26 06:32:20 ET
Summary
- There is a clear transition towards an all-year-round brand. With its new spring/summer collection, we expect Moncler to outgrow sector peers.
- Stone Island recovery still needs to play out. Despite that, Moncler Group has room to grow sales and profits.
- With a cash-positive balance sheet and given the EPS momentum, Moncler's valuation remains attractive. Our buy rating is confirmed.
We recently noticed that Moncler's stock price (MONRF) has underperformed the market (Fig 1), and this was due to a few sell-side analysts who started cutting the company's target price. The group has strong market positions in outerwear and a top-performing team that has successfully implemented product diversification to reduce seasonality. As a reminder, Moncler was established in 1952 with a focus on winter items. For this reason, looking at the past stock price performance, Moncler has usually suffered in the summertime. We should also report that Golden Goose postponed its €1.7 billion IPO last Tuesday, blaming dicey market conditions and EU political uncertainty. This was seen as a cold shower from the EU luxury market. That said, Golden Goose has a lower growth rate and a higher debt than Moncler....
Moncler Is A Gem In The Luxury Segment