Prada Sales Update Disappoints; No Change to Fair Value Estimate

Narrow-Moat Prada's 1H 2017 Performance Underwhelms but Not Beyond Repair; Shares Undervalued

Details From Prada Analyst Meeting Push Out Growth but Still Positive Long-Term View

Leading Independent Investment Research, Morningstar, Inc.

Morningstar

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Morningstar, Inc.

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Equity Bottom-Up

The two most significant elements suggesting that Prada has key competitive advantages are its enduring brand and its good returns on capital. As such, we rate Prada as a wide-moat company, signifying our belief in its ability to continue to achieve high returns and the difficulty competitors face when attempting to encroach on its brand equity. The Italian company possesses one of the most visible luxury brands in the world and continues to enjoy long-term growth prospects.Prada Group shows high margins and returns on capital, with operating margins running historically at more than 20% and returns on invested capital in the mid teens. We still see potential improvement as the store base and operating margins grow.Analysts: Philip Gorham, CFA, FRM &amp; Andreea Hotaranu

The two most significant elements suggesting that Prada has key competitive advantages are its enduring brand and its good returns on capital. As such, we rate Prada as a wide-moat company, signifying our belief in its ability to continue to achieve high returns and the difficulty competitors face when attempting to encroach on its brand equity. The Italian company possesses one of the most visible luxury brands in the world and continues to enjoy long-term growth prospects.Prada Group shows high margins and returns on capital, with operating margins running historically at more than 20% and returns on invested capital in the mid teens. We still see potential improvement as the store base and operating margins grow.Analysts: Philip Gorham, CFA, FRM &amp; Andreea Hotaranu

Prada Continues to Face Headwinds and Lags Peers, but Shares Are Undervalued and Declines Improving

Prada S.P.A.

Prada Continues to Face Headwinds and Lags Peers, but Shares Are Undervalued and Declines Improving