Kering: Barclays downgrades to 'underweight

(CercleFinance.com) - On Monday, Barclays downgraded its advice on Kering shares to 'underweight' from 'in line weighting', with a price target reduced from 276 to 210 euros.


On their return from a trip to China, Barclays' teams say they are concerned about the deterioration of economic activity in the country, which could, in their view, also delay Gucci's recovery.

The research firm now anticipates a 23% organic decline for the Italian brand in the current third quarter, instead of 19%.

According to Barclays, consensus estimates may yet prove too ambitious, leading it to anticipate further downward revisions from analysts and to downgrade its recommendation.

Its new price target of 210 euros shows a potential downside of 11%.

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