On Friday, Goldman Sachs (NYSE:GS) made a bullish move on Moncler SpA (BIT:MONC:IM) (OTC: MONRY) stock, upgrading the luxury fashion company's shares from Neutral to Buy. The new price target set by the firm stands at EUR58.70, indicating a potential upside of 23% from the current trading level.
The upgrade comes after a period of recent decline in Moncler's stock price, which Goldman Sachs views as an opportune moment for investors to engage with the brand. The analyst at Goldman Sachs highlighted Moncler's attractive price-earnings (PE) multiples in comparison to the sector, suggesting that the stock is now trading at a more appealing valuation.
Moncler is recognized for its sustained growth, which outpaces that of the wider luxury sector. This growth is supported by like-for-like (LFL) sales and retail space expansion, factors that are expected to continue driving the company's performance. Despite potential short-term earnings pressure due to challenges in the Chinese market and tough year-over-year comparisons lasting until the first quarter of 2025, the firm maintains a positive outlook on Moncler's prospects.
The analyst underscored Moncler's defensive forward margin profile, which is seen as a buffer against industry volatility. Additionally, the company's long-standing record of high growth relative to its peers solidifies its position as an attractive investment within the luxury sector.
Goldman Sachs' endorsement reflects confidence in Moncler's ability to navigate the current market landscape and capitalize on its growth strategies, despite the near-term headwinds facing the luxury industry. The upgraded rating and price target suggest that Moncler is well-positioned for future success, with significant potential for stock appreciation.
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