Prada SpA

01913: XHKG (HKG)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	HKD 67.00	Tvjczh	Wbxfxrm

Prada and Miu Miu on the Right Side of Fashion Cycle As Revenue and Profits Rise; Shares Expensive

Jelena Sokolova

Mar 10, 2023

We expect to increase our fair value estimate for narrow-moat Prada by a low-double-digit rate to incorporate stronger-than-expected revenue growth and faster margin expansion than we anticipated in 2022 and over the next several years. We still view shares as expensive at current levels, trading at almost 30 times forward earnings, as our valuation already incorporates continued margin expansion.

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