TOD'S S.p.A. : Luxury never die
By Oscar Salza
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
€84.75 | €0 | €82 | -100% |
The last earnings release in March 13th showed sales revenues of 893.6 million Euros, up 13.5% compared to 2010. The group’s net income was 135 million Euros, up 23.8% from one year early. In 2011 all the regions where the group operates grew double-digit, with the only exception of the Italian market, where sales increased by 5.5%. The “Asia and Rest of world” area confirmed its excellent results, up 38% from 2010, driven by the very strong results of mainland China and Hong Kong.
Technically, the share last week increased nearly 7.5%, the market hailed the group’s results. Tod’s is in a bullish trend in short and mid-term; this movement is supported by 20-days moving average. Both the renovate trust on Italian stocks and strong enterprise’s fundamental offer a good opportunity for investors with long view. The share hits a pivot point of 84.45 EUR. We fix a first target in the area between 88 and 90 EUR, and then 96 EUR, in order to retrace 100% of the downward movement began last July. We suggest a stop loss at 82 EUR.