Daniele Alibrandi, an analyst from Stifel Nicolaus, maintained the Hold rating on Brunello Cucinelli SpA (8BU – Research Report). The associated price target is €120.00.
Daniele Alibrandi has given his Hold rating due to a combination of factors influencing Brunello Cucinelli SpA’s current financial outlook. The company’s FY-24 EBIT met expectations, but net income and cash generation were slightly below forecasts, which might lead to minor adjustments in the consensus EPS estimates for FY-25. Despite this, the management’s reaffirmation of approximately 10% sales growth for FY-25 and their satisfaction with Q1 growth trends provide a positive outlook.
Brunello Cucinelli is seen as a strong player in the luxury segment, with potential for expansion. However, the higher comparison base in the first half of the year, especially in the US market, poses challenges. The company’s profitability was in line with expectations, but higher financial charges and increased working capital intensity led to lower free cash flow and higher adjusted net debt. These mixed signals contribute to the Hold rating, indicating a cautious but optimistic view of the company’s future performance.
In another report released on February 26, Kepler Capital also maintained a Hold rating on the stock with a €130.00 price target.