Morgan Stanley Lowers SAMSONITE Price Target to HK$21 Amidst Elevated Oil Price Concerns

Deep News
May 21

Morgan Stanley has issued a research report indicating that persistently high oil prices present a significant headwind for SAMSONITE (01910), impacting air travel demand and consumer purchasing power. The firm anticipates the company's sales growth this year will be moderate, with net profit margins also under pressure. However, it believes SAMSONITE's efforts to promote the Tumi brand and its marketing initiatives will gradually yield results. Consequently, the investment bank has reduced its target price for SAMSONITE from HK$26 to HK$21.

The report elaborates that sustained high oil prices are expected to lead to higher airfares, which will subsequently dampen demand for air travel. Additionally, mounting inflationary pressures are likely to curtail discretionary consumer spending. These risks could become more pronounced in the second half of 2026, a traditional peak travel season. Meanwhile, SAMSONITE continues to actively pursue expansion measures, with advertising, promotional, and distribution costs projected to remain elevated. Morgan Stanley has revised down its sales forecasts for SAMSONITE for 2026 and 2027 by 3% and 2%, respectively. Correspondingly, its earnings per share forecasts for the same periods have been lowered by 19% and 16%.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10