Salvatore Ferragamo is top Italian luxury midcap pick, Exane analysts Giuseppe Marsella and Luca Solca write in Friday note, calling the stock the most diversified in its peer group.
- Salvatore Ferragamo benefits from range of geography, distribution and product presence
- Analysts caution that new management team should implement growth plan fast
- Moncler SpA could deliver good short-term results but specialization could limit growth; “diversification is crucial”
- Tod’s SpA outlook also cautious due to margin pressure and prospect of competition in lower-price luxury
- Most critical luxury driver is growth in China
- EUR/USD exchange rate can have strong impact on sector; Brunello Cucinelli most exposed
- M&A news can impact luxury midcaps, because they can be seen as targets