
Kering: victim of two recommendation downgrades
(CercleFinance.com) - Kering was the biggest loser on the CAC 40 on Monday morning, following two downgrades of analysts' recommendations, accompanied by lowered price targets for the stock.
While the CAC 40 rebounded by around 0.7%, the stock fell by more than 3% around 11:15 a.m., by far the biggest drop on the Paris index.
In a note released early this morning, RBC said it had downgraded its opinion on the share from "outperform" to "perform in line with the sector", with a price target reduced from E310 to E290.
The Canadian broker says it is concerned about the pronounced weakening of the luxury goods sector, a phenomenon which it believes is likely to affect Gucci in particular at a time when the brand is undergoing its transformation.
From its point of view, the horizon for a turnaround of Kering's main subsidiary continues to shift in time, with the broker saying it no longer expects the entity to return to growth before the second half of 2025.
Having just returned from a trip to China, Barclays' teams say they are concerned about the deterioration of economic activity in the country, which could, also from their point of view, delay Gucci's recovery.
According to Barclays, consensus estimates may yet prove too ambitious, leading it to anticipate further downward revisions and to downgrade its recommendation to 'underweight' with a price target lowered to 210 euros, representing a potential downside of 11%.
Analysts at Oddo BHF renewed their 'neutral' opinion on the share this morning, with a price target of 309 euros.
Since the beginning of the year, Kering shares have fallen by more than 42%.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
While the CAC 40 rebounded by around 0.7%, the stock fell by more than 3% around 11:15 a.m., by far the biggest drop on the Paris index.
In a note released early this morning, RBC said it had downgraded its opinion on the share from "outperform" to "perform in line with the sector", with a price target reduced from E310 to E290.
The Canadian broker says it is concerned about the pronounced weakening of the luxury goods sector, a phenomenon which it believes is likely to affect Gucci in particular at a time when the brand is undergoing its transformation.
From its point of view, the horizon for a turnaround of Kering's main subsidiary continues to shift in time, with the broker saying it no longer expects the entity to return to growth before the second half of 2025.
Having just returned from a trip to China, Barclays' teams say they are concerned about the deterioration of economic activity in the country, which could, also from their point of view, delay Gucci's recovery.
According to Barclays, consensus estimates may yet prove too ambitious, leading it to anticipate further downward revisions and to downgrade its recommendation to 'underweight' with a price target lowered to 210 euros, representing a potential downside of 11%.
Analysts at Oddo BHF renewed their 'neutral' opinion on the share this morning, with a price target of 309 euros.
Since the beginning of the year, Kering shares have fallen by more than 42%.
Copyright (c) 2024 CercleFinance.com. All rights reserved.