PRDSY - Prada: Spotlight On Planned Retail Investments And Potential Dual Listing

2024-04-03 10:02:51 ET

Summary

• Prada's planned EUR1 billion investment in retail stores may lead to long-term gains, but this could have a negative impact on the company's short- to mid-term profit margins.
• A potential dual listing could attract more investors, but the stock is already trading at close to fair valuation based on a peer comparison.
• My decision is to assign a Hold rating to Prada stock, following an assessment of PRDSY's potential and planned corporate actions.

Elevator Pitch

My investment rating for Prada S.p.A. ( PRDSY ) [1913:HK] is a Hold. The company describes itself as "a global leader in the luxury industry" with "prestigious brands" like "Prada" and "Miu Miu" on its corporate website ....

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