ETF Idea Europe: The luxury sector trumps inflation ————— | FSMOne SG - Research Highlights

ETF Idea

Europe: The luxury sector trumps inflation

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• Europe is a strategic place to be in right now given the constructive growth outlook, and among the sectors, consumer discretionary (luxury) is a bright spot with the strongest earnings growth at 90% in 2022.

• In an inflationary environment, the luxury sector is attractive given its strong pricing power which should translate into earnings resilience.

• The consumption appetite should continue given the continued momentum of the post-pandemic euphoria, strong spending power, and rising income.

• Our 2023 target price for EMLES Luxury Goods ETF is USD 36, translating to an upside potential of 53%, based on the last closing price of USD 23.74 on 10 March 2022.

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: EMLES Luxury Goods ETF (BATS: LUXE)