Kering: new lows after BofA downgrade

(CercleFinance.com) - Kering's share price was one of the biggest decliners on the CAC 40 on Monday's Paris Bourse, after Bank of America lowered its recommendation on the stock from "buy" to "neutral".


At around 2:00 pm, the luxury group's shares were down 2.6%, while the CAC 40 was losing around 0.2%.

In a note dedicated to the luxury sector, BofA highlights the "limited visibility" surrounding the takeover of the Gucci brand, even though it considers that Kering is adopting the right strategy to turn the label around.

More generally, the broker believes that the demand environment has now become "very complicated" and that the results of players in the sector are likely to come under pressure.

Its price target for Kering has thus been reduced from 400 to 265 euros.

The share, which this year returned to its lowest level since 2017, has now lost more than 44% since the start of the year, giving a market capitalization of around 27 billion euros.

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