Morgan Stanley has released a research report forecasting a significant valuation re-rating for SAMSONITE (01910), driven by positive fourth-quarter prospects. Sales growth from August to October has turned positive, with U.S. air passenger traffic rising approximately 4% in October—the highest increase this year. Despite a higher wholesale base in Q4 2024, these factors support management's optimistic outlook. The bank maintains an "Overweight" rating on the stock with a target price of HK$24.

The report highlights that SAMSONITE's Q3 gross margin remained robust despite weak demand and tariff impacts, supported by improved supply chain and product management, enhanced brand value, and a manageable competitive landscape. The group's performance decline began in Q2 and Q3 2024, as global demand was hit by inflation and a reversal in travel momentum. Morgan Stanley suggests Q3 2025 could mark the start of a new cycle for the company.