Pattern S.P.A. Hold Rating Amid Challenging Fashion Industry Outlook and Strategic Adjustments

Gianluca Mozzali, an analyst from Corporate Family Office SIM, maintained the Hold rating on Pattern S.P.A (PTR – Research Report). The associated price target was lowered to €6.00.

Gianluca Mozzali has given his Hold rating due to a combination of factors impacting Pattern S.P.A. While the company’s FY-24 results met market expectations in terms of sales and EBITDA, the outlook for the global fashion industry in 2025 appears challenging. This has led to a downward revision of sales growth expectations and a restructuring of the company’s operational and capital expenditure plans. Additionally, the decision to suspend dividend payments, previously set at a 35% payout, reflects a cautious approach to navigating these anticipated headwinds.
Despite these challenges, Pattern S.P.A. maintains a strong position in the luxury market, supported by its solid financial structure and strong relationships with high-end clients. The company’s unique competitive positioning suggests it could benefit significantly once the luxury market rebounds. However, given the current market conditions and revised estimates, Mozzali believes the stock is fairly priced, justifying a Hold rating at this time.