Kering: Goldman Sachs downgrades to 'sell

(CercleFinance.com) - On Tuesday, Goldman Sachs downgraded its recommendation on Kering shares to 'sell', with a 12-month price target unchanged at 235 euros, representing a potential downside of 9%.


In a study of the European luxury goods sector, the analyst explains that he is well aware that the stock has already significantly underperformed its comparables this year due to the difficulties encountered by its Gucci brand.

Even so, in a difficult economic climate, Kering is likely to suffer from reduced earnings visibility compared with the rest of the sector", explains the intermediary.

The Gucci brand is in the midst of a turnaround and investment phase essential to revitalize its growth (new collection, attraction of new customers and engagement activities), which is likely to pose an increased risk in operational terms", warns Goldman.

In its note, the analyst specifies that its earnings forecasts for fiscal 2025 are now 11% below those established by consensus.

Copyright (c) 2024 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.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.