On Thursday, RBC (TSX:RY) Capital has increased the stock price target for Moncler SpA (BIT:MONC:IM) (OTC: MONRY) to €69.00, up from €67.00, while keeping a Sector Perform rating on the stock. The adjustment follows Moncler's announcement of a strong first quarter, showcasing a 26% increase in retail comparable foreign exchange revenue growth.
The company's first-quarter performance was robust, with significant achievements noted across various regions. Despite these positive results, Moncler's management has maintained a conservative outlook, planning for mid-single digit like-for-like (LFL) growth. This conservative stance is likely to set boundaries on potential earnings upgrades in the near future.
RBC Capital recognized Moncler's effective management and the successful operation of its Grenoble line. Moreover, the anticipation of another Genius event planned for the second half of 2024 is expected to sustain the company's momentum. These factors contribute to Moncler's ability to manage its business operations effectively.
Still, the valuation of Moncler's stock, trading at 27 times price-to-earnings (P/E), may be considered less appealing by some investors. Despite this, RBC Capital notes that Moncler stands out in the luxury sector, demonstrating positive volume growth, which is seen as relatively uncommon in the current market climate.
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