PRADA Stock Forum

Prada's positive outlook seems priced into the market, with shares trading above industry multiples. Despite high prices, the brand's optimistic future suggests other factors may offer investment opportunities.

Market consensus no longer provides an EPS estimate for Prada, focusing more on revenue. Prada's forecasted revenue growth of 7.8% p.a. until 2024 is slower than its historical 10% p.a. growth and the industry's expected 9.9% annual growth.

Despite Prada's inconsistent earnings growth, investors have high expectations. However, without improved earnings performance, high share prices may not be sustainable. The balance sheet could also pose risks.

Prada's promising returns on reinvested capital have been acknowledged by investors, evident in the stock's robust performance in the past five years. Further research is needed to determine if these trends will continue.

Despite large liabilities, Prada's robust net cash position and enhanced EBIT diminish its overall debt risk. The fashion giant's potent ability to generate 123% of its EBIT as free cash flow adds to its credit-worthiness.

CEO Andrea Guerra shows optimism about potential business growth and brand excitement, setting a strong stance for Q4 and above-market growth in 2023. Despite geopolitical tensions, impact on business is minimal.