Kering: Oddo remains cautious, maintains neutral rating

(CercleFinance.com) - Oddo maintains its "neutral" rating on Kering shares, with an unchanged target price of 675 euros.


The broker points out that 30% of the group's network was closed in April and May due to the health situation in China, and that a "very hesitant" recovery is on the horizon. It expects Q2 sales in China to fall by over 30%.

Gucci, the group's flagship brand, remains the most exposed - Oddo is therefore adjusting its forecasts, now expecting organic growth of 4% for Gucci in Q2 (compared with +7% in the previous estimate), and 11% in Q3 (compared with 13%).

Overall, analysts find the valuations of luxury stocks attractive from a 12-month perspective, although the potential for the Kering stock to catch up in this context will obviously depend on the evolution of investors' perception of Gucci, they conclude.

As things stand, the share is up about 0.2%, underperforming the market in Paris (+1%).


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