Kering: HSBC lowers target price

(CercleFinance.com) - HSBC announced on Friday that it had lowered its target price for Kering shares from E440 to E400, deploring the lack of visibility surrounding the turnaround of its flagship brand, Gucci.


In a note published late morning, the broker believes that the arrival of a new creative director (Sabato de Sarno) more focused on the brand's tradition should soon bear fruit, as should the appointment of a new CEO (Jean-François Palus) and the increase in marketing expenditure.

HSBC has therefore included the scenario of a return to double-digit growth for the Italian label in the course of Q4, while acknowledging a lack of conviction around this hypothesis.

The broker acknowledges that the valuation of Kering shares may seem attractive at current levels, with a 2024 P/E of 17.5x, i.e. a 29% discount to its peers in the luxury goods sector, but says it sees no immediate catalyst.

It therefore maintains a hold recommendation on the stock.


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