Kepler cuts Safilo to 'hold' after stock's summer rally

Safilo SpA

06/10/2025 09:41

** Kepler Cheuvreux downgrades Safilo SFLG.MI to "hold" from "buy" but raises its PT to EUR 1.7 from EUR 1.2 in its Q3 earnings preview, saying it sees a limited upside following the stock's strong summer rally

** As of 0805 GMT, shares in the Italian eyewear group are down 6%, after falling as much as 8.8% earlier in the session

** Kepler points to the increase in Safilo's share price, up more than 40% after it posted a Q2 beat on July 31, in a re-rating driven by lower risks from U.S. tariffs and effective countermeasures that the broker says should boost Q3 metrics

** "While a lower cost of capital could be deserved, we are broadly confirming estimates, to which we see limited upside risk (unless M&A is performed)," Kepler says

** The shares are on track for their worst day since April 4, when they fell amid market volatility triggered by the announcement of U.S. President Donald Trump's sweeping tariffs on April 2

** However, the stock is still up by 65% YTD including Monday's fall

($1 = 0.8560 euros)

(Enrico Sciacovelli)

((Enrico.sciacovelli@thomsonreuters.com))