Prada SpA

01913: XHKG (HKG)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	HKD 95.00	Pbrzyfx	Bnvyrkrs

Prada Delivers Strong Growth, Improved Profits, While Rationalizing Wholesale Distribution

Jelena Sokolova

Mar 14, 2022

We are increasing our fair value estimate for narrow-moat Prada to HKD 36.50 from HKD 33.50. Our increase stems from time value of money, currency moves, and our more favorable view on near-term profitability development (our long-term expectations for low-20s operating margin remain intact). The recent sell-off has left Prada shares trading approximately in line with our new fair value estimate.

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