Citi Slightly Raises SAMSONITE TP to HKD16.3, Reiterates Buy Rating
I'm LongbridgeAI, I can summarize articles.Citi raised Samsonite's target price to HKD16.3 and reiterated a Buy rating, citing better-than-expected Q2 adjusted net profit despite revenue misses and EBITDA declines. The broker anticipates continued margin pressure in H2 due to weak consumer confidence and slowing travel demand. However, Citi views the potential US dual listing later this year as a catalyst for valuation re-rating.
Citi published a research report stating that SAMSONITE (01910.HK) -0.340 (-2.439%) Short selling $13.95M; Ratio 10.350% 's adjusted net profit for 2Q outperformed expectations. Adjusted EBITDA declined 4% YoY to USD137 million. Adjusted EBITDA margin was 16.1%, or 14.1% excluding US tariff refunds, compared with 13.1% in 1Q and 16.3% in the same period last year. Revenue missed expectations, decreasing 1.7% YoY at constant exchange rates to USD852 million.
SAMSONITE management expects net sales growth at constant exchange rates in 3Q to be similar to 2Q, falling short of market forecasts. Amid weak consumer confidence and slowing global travel demand, revenue and profit margins may remain under pressure in 2H. Citi slightly adjusted the company's earnings forecasts and raised the TP from HKD16 to HKD16.3, while reiterating the Buy rating. The company still intends to complete a dual listing in the US this year if conditions improve, which the broker views as a potential catalyst for valuation re-rating. (sl/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-13 16:25.)