[THE INVESTOR] Fila Korea has begun to be reassessed as a global consumer goods company, said Daishin Investment and Securities on Nov. 30 maintaining a “buy” recommendation and 74,000 won (US$65.95) target price.
It has succeeded in translating the sensitivity of young consumers’ into a brand through systemic changes in production and distribution structures. Among global peers, however, it is the most undervalued, as its price-earnings ratio is at 15 times despite a sharp rise in stock price, said analyst Yoo Jeong-hyeon.
The fact that its shoe brand Disruptor 2 has been chosen by Footwear as “Shoe of the Year,” following last year’s Nike’s Air Jordan, also will boost the company. Recent exchange rates are also favorable, especially since its revenue and 85 percent of profits are in US dollars, said the analyst.
By Hwang You-mee (email@example.com)