In a report released today, Anne Ling from Jefferies downgraded Samsonite International SA (SMSOF – Research Report) to a Hold, with a price target of HK$14.62.
Anne Ling has given her Hold rating due to a combination of factors impacting Samsonite International SA. A significant concern is the uncertainty surrounding US tariffs, which affects approximately 32% of the company’s sales projected for 2025. Despite Samsonite’s proactive measures, such as backend adjustments and inventory management, the unpredictability of tariff scales and their impact on US consumer demand remain significant risks.
Additionally, the company’s financial outlook has been revised, with a new price target of HK$14.62, reflecting a 50% decrease. This adjustment is attributed to lowered earnings forecasts for 2025-2027 and an increased beta factor, indicating higher volatility due to trade uncertainties. While Samsonite has demonstrated efficiency in the past, current market conditions and regional challenges, particularly in the US and Asia, have led to a cautious stance, resulting in the Hold rating.