Samsonite initiated with a Buy at Goldman Sachs

Goldman Sachs initiated coverage of Samsonite (SMSEY) with a Buy rating and HK$28 price target The firm notes Samsonite is one of the leading travel luggage companies with 15%-16% market share globally under its 3 core brands – Samsonite, Tumi and American Tourister. The pandemic led to travelers’ purchases to be concentrated in FY21-2023, which has supported its robust +38% sales CAGR in local currency terms to $3.7B in FY23. Since then, its sales have fallen by about 10% on slower travel, luxury goods demand and increased local competition in India/China. Goldman sees early signs of stabilization, which should help the stock to mid-revert from a depressed valuation multiple of 11-12 times price to earnings, with the proposed U.S. dual listing also a potential catalyst.