Kering: Oddo BHF cuts TP with results at half-mast

(CercleFinance.com) - Oddo BHF maintains its 'neutral' rating on Kering shares, with a target price lowered from E250 to E235.


The analyst points to a sharper fall in sales and earnings in H2, and believes that the end of the tunnel is not yet in sight.

Q3 sales came in below expectations at E3,786m, compared with Oddo BHF's forecast of E3,917m and the consensus of E3,968m compiled by the company. The organic decline in sales worsened to -16% in Q3, after -11% in Q2.

At the time of its half-year results, the group said that it expected a 30% y-o-y decline in group EBIT in H2. Oddo BHF reports that the group is now targeting FY 2024 EBIT of E2.5bn, suggesting a H2 decline of -50% to -55%.

With the Balenciaga and AMQ brands notably suffering, the broker targets a 2024 group EBIT margin of 14.7% vs. 24.3% in 2023 (Gucci at 21.1% vs. 33.1% in 2023).

The expected improvement in profitability remains relative for 2025, with a Gucci margin of 21.5% and a group margin of 15.3%, Oddo BHF adds.


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