Prada Target Price HK $49.5, The City's Most "Bear"

< p > by the slowdown in Eurasian sales growth, Prada SpA (1913.HK) Prada shares fell at the end of 2013, while Prada SpA (1913.HK) Prada shares fell by 6.69% in 2013, which is one of the worst performing a href= "http://www.91se91.com/news/index_h.asp" > luxury goods "/a" stocks.

Last Friday, January 3, 2014, Prada SpA (1913.HK) Prada received HK $68.8, a decrease of 1.15%, while Macquarie Capita Macquarie's target price of HK $49.5 was 28% lower than that of Hong Kong Macquarie.

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< p > Macquarie Capita Macquarie said that although Prada SpA (1913.HK) Prada had strong brand effect, its expectations for the company were too high. After the three quarter results were released, it was exhausted, and decided to lower its target share price and maintain the "losing market" rating.

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< p > mid December 2013, JP Morgan released a report that Prada SpA (1913.HK) Prada's three quarter performance was worse than expected, coupled with the slowdown in the growth of the luxury market, the opportunity for further increase in gross margin was limited. Its rating was downgraded from "overweight" to "neutral", while its target share price was reduced from HK $87 to HK $74.

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< p > in addition to the above two investment institutions, Bocom International Securities Ltd. bank international securities also issued a report in the last week of 2013, expressing concern about Prada SpA (1913.HK) Prada.

In the end of 2013, the Bank of China International Securities report pointed out that "Prada SpA (1913.HK) Prada's core market" a href= "http://www.91se91.com/news/index_s.asp" > European market < /a > showed a further slowdown so far in November 2013 and December.

Phoebe Wong, a bank analyst, said that the trend of Chinese tourists' consumption and the anti-corruption policies of the Chinese government have more and more influence on Prada Prada.

The bank advised investors not to buy Prada SpA (1913.HK) Prada in the four quarter, and said that Prada SpA (1913.HK) Prada's concerns were further intensified.

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While P lowered the target price, Macquarie Capita Macquarie also lowered the forecast of Prada SpA (1913.HK) Prada's profit after tax in the current and the next 6% years to 14%.

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< p > according to the no fashion Chinese net data, as of the three quarter of October 31, 2013.

Prada SpA (1913.HK) Prada's largest market income in the Asia Pacific region recorded only a single digit growth, an increase of 7.87% (an increase of 13% under constant exchange rate), showing a trend of accelerated slowdown (24.8% and 17.9% respectively in the first quarter and the two quarter), 195 million 900 thousand in the Greater China region, 7.93% higher than the same period last year, 4.46% in Europe (7.2% in two quarter), double digit growth in retail channel revenue, and a decline in wholesale income.

The slowdown in Eurasian markets has worried the industry and analysts.

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< p > Prada SpA (1913.HK) Prada Patrizio Bertelli explained at the earnings analysts conference that the slowdown in European sales was due to more tourists going to the US. In the three quarter, the Prada SpA (1913.HK) Prada a a "href=" > the American market "< 13.6%" increased by 13.6% compared with the increase in retail channel sales (a constant exchange rate increased by 21%).

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< p > also worth mentioning is the question of tax rate. Prada SpA (1913.HK) Prada Patrizio Bertelli said that the three quarter profits were greatly influenced by tax rates. Prada SpA (1913.HK) Prada announced in December 20th that it had reached an agreement with the Italy tax authorities to pay the 10 year tax on the tax rates of the relevant holding companies and subsidiaries such as Luxemburg, Holland and other subsidiary companies such as Prada SpA (Prada), and Italy media. The estimated amount of the Italy media amounted to 400 million euros, but it did not reach that amount.

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