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PNJ [BUY +31.2%] - SSSG regains strength, cementing earnings prospects - Update

We reiterate our BUY rating with total return of +31.2%. We increase our TP by 12% from our Update Report issued February 16 as our discussion with management suggests that the company is on track to beat our previous SSSG projections. We raise our SSSG assumption to 15% from 8% previously, while maintaining our projection of 40 new stores in FY17. This leads to an estimated 34% growth in retailing revenue in FY17.