Kering: Credit Suisse upgrades to buy
(CercleFinance.com) - Credit Suisse has upgraded its neutral rating on French luxury group Kering to buy ("outperform").
It has raised its target price for the stock from 400 euros to 460 euros, in particular, due to the forthcoming "spin-off" of Puma.
According to analysts, the strong sales momentum of the group which includes brands such as Gucci, Bottega Veneta, YSL and Balenciaga, "shows no signs of slowing down".
In short, analysts believe that the Kering share should be trading at a premium relative to the luxury sector, Credit Suisse says, while its 12-month P/E of 21x currently reflects a discount of 6%.
Copyright (c) 2018 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.
It has raised its target price for the stock from 400 euros to 460 euros, in particular, due to the forthcoming "spin-off" of Puma.
According to analysts, the strong sales momentum of the group which includes brands such as Gucci, Bottega Veneta, YSL and Balenciaga, "shows no signs of slowing down".
In short, analysts believe that the Kering share should be trading at a premium relative to the luxury sector, Credit Suisse says, while its 12-month P/E of 21x currently reflects a discount of 6%.
Copyright (c) 2018 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.