Prada's Brand Traction Continues As Its Growth Is Strong Individually and Relative to Peers

We increase our fair value estimate for narrow-moat Prada to HKD 38 from HKD 36.50 to reflect better expectations for full-year growth and profitability on the back of strong first-half results and time value of money somewhat offset by negative currency effects. Despite a solid performance we see shares as rather expensive at current levels. Our forecasts call for 6%-7% long-term revenue growth and margin scaling to 24% (from 14.5% reached in 2021) at a defensible level.