Kering: RBC downgrades its opinion, target also reduced

(CercleFinance.com) - RBC announced on Monday that it had downgraded its opinion on Kering shares from "outperform" to "perform in line with the sector", with a price target reduced from 310 to 290 euros.


In a note released early this morning, the Canadian broker expressed concern 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 his point of view, the horizon for a turnaround of Kering's main subsidiary continues to shift in time, with the broker saying he no longer expects a return to growth for the entity before the second half of 2025.

In view of the 36% fall in Kering's share price since the start of the year, RBC says it can't help but notice the strong correlation between the downward revision of market forecasts and the evolution of the share price.

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