Daiwa raised its rating on Samsonite to "Buy," anticipating the company's revenue to enter a new growth cycle

Daiwa raised its earnings per share forecast for Samsonite (01910.HK) for this year to 2027 by 7% to 16%, based on a more resilient gross margin brought about by changes in the product mix and a gradual increase in market spending. With a potential new revenue growth cycle unfolding and the possibility of a U.S. listing attracting more global investors, the target price based on a forecast price-to-earnings ratio of 13 times for next year is considered realistically achievable. The firm also noted that a 13 times forecast price-to-earnings ratio is roughly in line with the median of international brands, representing a 20% discount compared to the median of luxury goods stocks.

The firm raised its target price for Samsonite from HKD 16 to HKD 25, upgrading its investment rating from "Hold" to "Buy."