There is no peace for Ferragamo. After the death two months ago of Wanda Ferragamo, wife of the founder Salvatore and historical face of the Florentine maison, and the farewell last winter of the CEO Eraldo Poletto, today the stock is the worst of the Ftse Mib in Piazza Affari, where in mid-morning it loses almost 5% under 19 euros for action. There are two reasons: first, the Chief Financial Officer Ugo Giorcelli, named by Poletto himself in 2017, he will leave office from 11 January "to embark on a new path of professional growth". Giorcelli had been CFO of Amplifon for ten years. The company, in a note, informed that "resolutions will be announced in this regard, and that in addition to the legal obligations, will not be recognized to Dr. Giorcelli no additional compensation, for any reason and in any form, or other benefits, and that no non-competition commitments have been entered into". The issue will be addressed in the Board convened for 13 December.
In addition, the ax of Kepler Chevreux's analysts fell on Salvatore Ferragamo, who lowered their recommendation on the Florentine maison's stock this morning, also reducing the target price. The broker brought the rating from hold a reduced, cutting the target price from 20,50 to 18,50 euros per share. In the report, analysts point the finger at a "slower margin recovery trajectory than our previous expectations" and cut EPS estimates by 8% on 2019 and 11% on 2020. Equita analysts also cut the recommendation a reduced with a target price of 19 euros, even if according to them Giorcelli's decision is "of a personal nature and not to be found in the recent trend of the business". However, “the transition phase of the group is confirmed, also in managerial terms. While Ferragamo is the only company with an expected accelerating earnings momentum in 2019 (+19% versus -21% in 2018) – versus the generally embedded slowdown for the sector – we confirm our negative view on the stock considering the high multiples and the still limited visibility on the costs and timing of the relaunch”.
