Safilo Shares Surge in Milan After Quarterly Earnings Advance
Safilo Group SpA (SFL), the world’s second- largest maker of eyewear, was temporarily suspended in Milan after rising 10 percent following its announcement that second- quarter earnings beat analyst’ estimates.
Earnings before interest, taxes, depreciation and amortization in the three-months ending June rose 31 percent, the Padua, Italy-based company said in a statement after the close of trading yesterday. The company also appointed Robert Polet, the former chief executive officer of Gucci Group NV, as chairman.
The owner of the Carrera eyeglass brand has returned to profit after Dutch investment company Hal Holding NV injected cash into the company, buying stock and assets.
“Polet brings enhanced credibility to Safilo, a know-how in the luxury space and a reputation for innovation which should help the group in its phase two post-relaunch,” Flavio Cereda, an analyst at Bank of America Merrill Lynch, wrote in a note today. He rates the stock a “buy.”
“The picture is clear in our view: on our 3-year projections the stock has 70 percent upside potential, worse- case scenario is essentially in the price today.”
Shares rose as much as 11 percent and traded up 95 cents, or 10.8 percent, at 9.78 euros as of 1:52 p.m. after the stock resumed trading.
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