Citigroup initiates Brunello Cucinelli at 'buy' on resilient demand, Asia market share gains
BUZZ-Citigroup initiates Brunello Cucinelli at 'buy' on resilient demand, Asia market share gains ** Citigroup initiates coverage of Italian luxury brand Brunello Cucinelli BCU.MI at "buy" on resilient demand from affluent clients and market share gains in Asia
** The broker sets a €110 ($126.6) target price as it expects measured margin progression and better free cash flow conversion following normalisation of capital expenditures
** The target price offers an about 25% upside to current stock price
** Citi adds that "current brand-related concerns are overdone, offering an attractive entry point to a compelling long-term growth story" for the business
** The brokerage anticipates that deeper expansion into Western wardrobes and a measured roll-out in Greater China will sustain above-sector growth over the coming years
** Cucinelli's stock down 1.3% as of 0900 GMT, also down 7.3% YTD
** Out of 17 analysts that cover the luxury firm, 11 rate the stock "strong buy" or "buy," six rate "hold" - LSEG data
($1 = 0.8689 euros)
(Reporting by Romolo Tosiani)