Kering: Jefferies initiates coverage with 'buy' rating.

(CercleFinance.com) - Jefferies is initiating its coverage of the Kering stock with a "buy" recommendation and a target price of 425 euros, considering that the "magic money tree" that he says the group "has more fruit to bear".


"Kering has enjoyed a significant re-rating since the relaunch of its main asset Gucci from FW15-16, and the stock has soared by more than 80% in the last 12 months, essentially in line with expected operational performance," the broker points out.

The broker believes that there is leeway for further growth and improvement in its margin in 2018-2019, as well as significant cash generation. " The run is not quite over yet," Jefferies concludes.


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