Prada's stock rises as major banks boost targets, driven by Miu Miu's growth.

Prada's Share Price Strengthens; Miu Miu's Performance Helps Multiple Institutions Raise Target Price

Prada (01913) has shown a strong stock performance recently, rising by 4.99% to HKD 63.15 at the time of writing, with a transaction value reaching HKD 21.8437 million, drawing market attention. Several investment banks hold an optimistic outlook on Prada's future, raising their target prices and favoring the sustained growth potential of its brand Miu Miu.

Morgan Stanley: Optimistic about Prada's Growth Potential, Target Price Raised to HKD 69

In its latest report, Morgan Stanley noted that Prada's brand has a robust long-term growth potential, maintaining an "overweight" rating and raising the target price from HKD 67 to HKD 69. The report particularly mentioned that Prada's earnings performance is expected to outperform the market, with Miu Miu's stellar performance being a key factor driving the group's overall growth.

UBS: Valuation Potential in Fundamentals, Target Price Raised to HKD 77

UBS also highly commended Prada's performance, reiterating a "buy" rating and increasing the target price from HKD 74 to HKD 77. UBS analysts believe Prada's fundamentals have significant revaluation potential, with promising future earnings growth prospects.

Citi: Upgrades Performance Forecast for 2024-2026, Raises Target Price to HKD 68

In its latest report, Citi upgraded Prada’s 2024 sales, EBIT, and earnings per share forecasts by 1%, 2%, and 2%, respectively; forecasts for 2025 and 2026 were also raised by 1%-3%. Based on this, the bank raised the target price from HKD 64.3 to HKD 68, noting that Prada's total revenue for the first three quarters grew by 17% year-on-year at constant exchange rates. Citi believes this performance will drive a 20% growth in EBIT and earnings per share this year, improving the profitability outlook for the second half.

Miu Miu: Becoming the Growth Engine

In numerous analyses, the strong performance of Prada's subsidiary brand Miu Miu is a highlight commonly mentioned by major institutions. Morgan Stanley particularly emphasized that Miu Miu's outstanding performance provides strong support for Prada Group's overall growth. As Miu Miu's popularity continues to rise in the global market, it will continue to create new profit growth points for Prada.

Market Outlook

The positive forecasts by several investment banks and Miu Miu's continued impressive performance provide confidence in Prada's future growth. Market observers generally believe that against the backdrop of stable growth in global luxury market demand, Prada is expected to further consolidate its market position in 2025 and achieve continuous improvements in profitability.

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