Prada, A Luxury Group, Has Been Singing By Macquarie.

According to reports, although Italy

Prada SpA 1913.HK (Prada) has been dismal over the past two years. This year's first half fiscal year has also been sluggish and the market is not good. But this week, Macquarie boldly became the first investment bank to sing to the company.

On Tuesday, Macquarie released a report that raised the rating of Prada SpA Prada, from "running big market" to "winning the market", and almost doubled the target price of the group, from HK $18 to HK $33, with an amplitude of 83.3%. HK $33 still had a premium of 27% over Tuesday's closing price.

In the report, Macquarie affirmed that the performance of Prada SpA Prada in the first half of the fiscal year was still constrained by macroeconomic fluctuations and geopolitical risks. However, the bank believed that Prada SpA Prada group's product quality, operational efficiency and cost control improved positively, so it raised the 3% and 30% profit forecasts for the 2017 fiscal year and the 2018 fiscal year respectively.

On the basis of the multi report stimulus, Prada SpA (1913.HK) Prada shares surged 5.7% to HK $25.90 on Tuesday, while breaking the 250 day moving average.

According to data, in the 2015 fiscal year ended January 31st, Prada SpA, Prada's net profit fell to its lowest level in the past 5 years - 330 million 900 thousand euros, a sharp decrease of 26.9% compared with the 2014 fiscal year, which is nearly half that of the 2013 fiscal year.

The core profit of EBITDA was reduced by 15.9% to 802 million 800 thousand euros compared with the same period last year, and EBITDA profit margins had shrunk by 430 basis points to 22.6%.

In the first half of fiscal year 2016, July 31, 2016, the company's revenue plunged 14.8%, from 18.244 billion euros in the same period last year to 1 billion 554 million 200 thousand euros, and net profit fell 24.7%, from 188 million 600 thousand euros in the same period last year to 141 million 900 thousand euros.

EBITDA recorded a 3.300 euro billion euro, down 25% from a year earlier, with a EBITDA profit margin of 21.2%, a sharp drop of 290 basis points over the same period last year; EBIT recorded a 213 million 700 thousand euro, a sharp fall of 27.1% over the same period, and a EBIT profit margin of 13.8%, a year-on-year drop of 230 basis points.

Despite its dismal performance, Macquarie pointed out in the report that sales of the core business handbag category of the group's core brand Prada Prada have improved, which accounts for 60% of the brand's sales.

However, according to the data, the interim results report of Prada Prada SpA did not show the so-called "handbag business improvement" by Macquarie.

In fact, leather goods business is the worst performing category of Prada SpA, Prada. In the 2016 fiscal year, the median revenue plunged by 22.1%, leading to all categories.

Except singing well.

After improvement, Macquarie also claimed that some handbags were available only after October, but no fashion Chinese network visited some Chinese stores on Tuesday and Wednesday, and no shortage was found.

In addition to product problems, Macquarie said that through streamlining the plan and reducing expenditure, Prada SpA Prada's operating profit in the second half of the fiscal year is expected to be bottomed out. The two fiscal year is expected to increase by 15% and 17% respectively, which is only lower than the average increase of 22% over the past 5 years.

But in addition to Macquarie, the mainstream investment banks in the market are small, Credit Suisse and UBS.

SpA Prada sing empty.

In early August, Xiao Mo just lowered the target price of the company to HK $24.5 and maintained a neutral rating; UBS AG (UBSN.VX) UBS had sold the rating to the company before, and the target price was as low as HK $20, the most "bear" price; Credit Suisse Group AG (VTX:CSGN) Credit Suisse had been watching bad Prada SpA.

The target price is HK $23.5.

On Wednesday, Prada SpA (1913.HK) Prada shares rose 3.09% to HK $26.7.