CICC has released a research report indicating that PRADA (01913) reported first-quarter revenue of €1.428 billion, representing 3% organic growth year-on-year, which aligns with market expectations. The firm believes that in the context of an overall industry downturn, the group's moderate growth reflects its continued gains in global market share. Due to a reduction in earnings per share forecasts and a downward adjustment in industry valuations, CICC has lowered its target price by 13.3% to HK$65, while maintaining an "Outperform" rating. The firm expects the group's revenue growth to gradually accelerate by the end of this year, primarily driven by a lower base of comparison, the popularity of refined taste styles, and net store expansion for Miu Miu alongside the opening of Prada's selected flagship stores. However, these positive factors may be partially offset by a manageable decline in the Versace brand during its transition period. Considering the impact of Middle East conflicts, CICC has reduced its revenue forecasts for PRADA for 2026 and 2027 by 2% to €6.45 billion and €6.764 billion, respectively. Net profit forecasts for the same periods have also been cut by 2% to €817 million and €898 million, respectively.