Portobello’s unique business model, primarily the use of media barter, enables it to source branded products at extremely competitive prices for sale, in its own retail outlets and to other distributors in Italy, at a significant discount to its competitors. Management’s aspiration is to leverage this competitive advantage to grow its retail operations to national coverage over the long term, which suggests significant potential for new space from its current low market penetration versus its peers. Our discounted cash flow (DCF) based valuation of €121 indicates significant upside potential if Portobello can successfully expand across Italy.
