SAMSONITE (01910) gained over 3% in morning trading, with shares up 3.27% to HK$19.57 at the time of writing, recording a turnover of HK$96.50 million.
Gold Sachs issued a research report stating that based on SAMSONITE's Q3 results, it has raised its adjusted net profit forecast for the company by 5% to 8% from 2023 to 2027. The target price was increased from HK$20.9 to HK$22, with a maintained "Buy" rating. The bank noted that SAMSONITE's stock has fluctuated within a range over the past three months, but the better-than-expected Q3 performance and management's positive outlook should support short-term sentiment.
Compared to the August earnings call, SAMSONITE's management appeared more optimistic in their latest conference call regarding business prospects. They expect improved Q4 net sales growth over Q3, driven by new product launches in September and increased advertising ahead of the peak season. Goldman Sachs believes SAMSONITE's potential dual listing in the U.S. next year and share buybacks to mitigate dilution effects could serve as catalysts for further valuation upside.
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