The Zhitong Finance App learned that Bank of America Securities released a research report saying that it is estimated that Samsonite (01910)'s growth this year will mostly be concentrated in the second half of the year, reaffirming the “buy” rating, reducing earnings estimates per share by 5% this year and next two, and lowering the target price from HK$36 to HK$35.
According to the report, the company's first-quarter revenue and adjusted EBITDA increased by 1% and 3% year-on-year respectively, which was lower than expected, mainly due to the high base in the first quarter of last year and the adverse effects of foreign exchange changes. The company lowered its sales growth guide for the whole year from the original forecast of 10% to 12% to a higher number of units.
The bank expects Samsonite to re-establish a good growth momentum starting next quarter, mainly due to increased advertising efforts, growth in the Asian market driven by China/Japan, and the number of visitors to Europe during the summer.