Daiwa has issued a research report indicating that it anticipates a slowdown in SAMSONITE (SEHK: 01910) second-quarter sales, primarily due to the impact of Middle East conflicts on travel demand.

However, the firm expects sales to show month-on-month improvement within the second quarter and sequential quarterly improvement in the second half of the year.

The brokerage has reaffirmed its 'Buy' rating on Samsonite but has lowered its earnings per share forecasts for 2026 and 2027 by 26% to 28%.

It has also adjusted its valuation basis, reducing the forecast average price-to-earnings ratio for the current and next year from 13 times to 12 times.

Consequently, the target price has been revised down from HK$25 to HK$17.6, reflecting a weaker growth outlook and reduced visibility for market share gains.

Nevertheless, Daiwa believes Samsonite has clear near-term catalysts, including an expected sequential sales improvement following a ceasefire and easing regional tensions.

Additionally, management stated during the first-quarter earnings call that it aims to complete a dual listing in the United States by 2026, which could also present a re-rating opportunity.