Kering: Invest Securities sets new target price
(CercleFinance.com) - Invest Securities confirms its neutral rating on the Kering stock, setting a target price at 460 euros (against "under review").
The broker wonders whether the group has retained all the cyclicality that has characterised the historical development of its iconic Gucci brand. Analysts say that this is possible, in light of expected H1 2020 results, having reduced estimates for the group's organic growth to around -40% (Q2) and by over -50% for (H1) EBIT.
Penalised by its dependence on the tourism market, with growth foundations becoming more fragile, Kering has particularly suffered from its Italian integration, a market that was hit early on by the Covid-19 crisis and a particularly long lockdown period, the broker adds.
In all, over Q2 the group operated with barely half of its stores open; it will be unable to catch up lost ground over the rest of 2020, shifting the problem to 2021, it concludes.
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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.
The broker wonders whether the group has retained all the cyclicality that has characterised the historical development of its iconic Gucci brand. Analysts say that this is possible, in light of expected H1 2020 results, having reduced estimates for the group's organic growth to around -40% (Q2) and by over -50% for (H1) EBIT.
Penalised by its dependence on the tourism market, with growth foundations becoming more fragile, Kering has particularly suffered from its Italian integration, a market that was hit early on by the Covid-19 crisis and a particularly long lockdown period, the broker adds.
In all, over Q2 the group operated with barely half of its stores open; it will be unable to catch up lost ground over the rest of 2020, shifting the problem to 2021, it concludes.
Copyright (c) 2020 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.