Stifel reaffirms its 'hold' recommendation on Salvatore Ferragamo, while reducing its target price from 11.5 to 10.3 euros, in the wake of a reduction in its 2024-25 sales and EBIT projections by an average of 7% and 22% respectively.

For the May 9 trading update, the broker anticipates a 12% decline in organic sales for the first quarter, on weak demand in retail distribution in all regions except Europe, and a sharp contraction in the wholesale channel.

Stifel adds that the Italian luxury footwear house's share price is trading on 2024 and 2025 P/Es (price to EPS ratios) of around 70 and 50 times on its new estimates, which it considers expensive compared to the sector at 25 and 22 times.

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