Helix Investment Research
Long only, special situations, contrarian, growth

Meaningful Upside Ahead As More And More Consumers Join The Devil In Wearing Prada

Since listing in Hong Kong in June 2011, shares of Prada (OTCPK:PRDSY) have risen more than 75% from their HK$39.50 offer price as the company has continued its expansion in Europe, Asia, and the Americas, delivering strong growth in sales and profits. However, despite sector-leading growth in sales, profits, and EBITDA, shares of Prada trade at a meaningful discount to its peers on a price-to-earnings basis, and trade broadly in line with its peers on other metrics. When accounting for such above-average growth, shares of Prada are, under favorable assumptions, worth over 100% more than their present price. However, even under far more conservative scenarios, we see upside of at least 20% for shares of Prada as the

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