Citi reaffirmed its Buy rating and EUR70.00 price target on Moncler SpA (BIT:MONC:IM) (OTC: MONRY). The endorsement comes as LVMH and Ruffini Partecipazioni, the holding company behind Double R which owns a direct 15.8% stake in Moncler, declared that LVMH has purchased a 10% interest in Double R. This acquisition amounts to approximately 1.6% of Moncler, although the financial details of the transaction were not disclosed.
The agreement, which spans three years, anticipates that Double R will bolster its hold on Moncler to a potential maximum of 18.5%, supported by LVMH's acquisition of shares on the market over the next 18 months.
Upon completion of this increase, LVMH will possess up to a 22% stake in Double R, equating to around 4% of Moncler. Concurrently, Mr. Ruffini will retain a 78% share of Double R, translating to 14.5% of Moncler, a slight decrease from his previous 15.8% stake.
Mr. Ruffini has expressed that this move solidifies "Double R's position in Moncler" and provides the stability necessary for the implementation of his long-term strategy for the company. The transaction also carries the endorsement of LVMH's Chairman, Mr. Arnault, who is in favor of maintaining Moncler's independence.
This strategic partnership between the luxury giants is structured to reinforce Moncler's market position while aligning with the vision of the company's leadership. The collaboration underscores a mutual commitment to Moncler's growth and independence in the luxury sector.
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