Kering: JPMorgan downgrades stock
(CercleFinance.com) - On Monday, JPMorgan downgraded its recommendation on Kering shares from "neutral" to "underweight", with a target price reduced from E220 to E195.
In a report on the luxury goods sector, the broker said that it had yet to see any signs of recovery for the Gucci brand amongst consumers, despite the Italian label's creative efforts.
At the same time, the YSL brand continues to show a certain weakness, it adds.
Against this backdrop, the broker anticipates another year of falling earnings for Kering in 2025, unlike the consensus, which is hoping for a return to growth next year.
Its forecasts for 2024 are therefore 7% below those of the market, and 20% below those for 2025.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
In a report on the luxury goods sector, the broker said that it had yet to see any signs of recovery for the Gucci brand amongst consumers, despite the Italian label's creative efforts.
At the same time, the YSL brand continues to show a certain weakness, it adds.
Against this backdrop, the broker anticipates another year of falling earnings for Kering in 2025, unlike the consensus, which is hoping for a return to growth next year.
Its forecasts for 2024 are therefore 7% below those of the market, and 20% below those for 2025.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.