Eratat

Eratat: SIAS initiates Buy on the fashion footwear and apparel maker, with $0.32 target. Expects Eratat’s margins to recover, following company’s strategic shift away from sportswear, toward higher-value casual fashion wear, which appeals more to the Chinese consumer. Likes company’s ability to reach out to the mass market via its extensive network in the fast-growing second and third tier cities, and leverage to the China domestic growth story Says Eratat undeservingly trading below peer valuation multiples, and should play catch up given new growth opportunities arising from its repositioning exercise.