Kering: RBC still a buyer, target price 810 euros
(CercleFinance.com) - On Tuesday RBC maintained its "outperform" rating on Kering shares, with a target price of 810 euros, believing that the recovery of the Gucci brand is an opportunity to be seized.
In its comments this morning, the broker considers that the Italian brand is far from running at full capacity, particularly regarding stock-keeping units (SKUs) in women's leather goods.
However, RBC said that it expects its performance to improve as FY 2022 progresses, while the rest of the business portfolio should remain strong, continuing to exceed expectations.
The Canadian broker says that the French group's balance sheet and cash flow position give it leeway for further acquisitions, while its valuation remains attractive.
Trading at a 2023 P/E of 15x, Kering remains its best pick in the luxury sector - not only for valuation reasons but also in view of the upcoming recovery.
Kering shares are down 0.5% at about 493 euros in a flat market this lunchtime.
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