Kering: Bryan Garnier raises target price
(CercleFinance.com) - While maintaining its "neutral" rating on Kering, Bryan Garnier has upped its fair value for the share from 466 euros to 505 euros, the day after an analyst meeting at which the luxury group presented its outlook for Gucci.
"While the sales ambition of EUR10bn is in line with our expectations, a 40% EBIT margin seems more ambitious to us," says the broker, which has raised its earnings estimates by 5% to take account these prospects.
Bryan Garnier explains that “the expected improvement will come from both gross margin (distribution mix and production internalisation and efficiency) and operating leverage thanks to rent negotiations and the higher weight of digital in communication expenses.”
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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.
"While the sales ambition of EUR10bn is in line with our expectations, a 40% EBIT margin seems more ambitious to us," says the broker, which has raised its earnings estimates by 5% to take account these prospects.
Bryan Garnier explains that “the expected improvement will come from both gross margin (distribution mix and production internalisation and efficiency) and operating leverage thanks to rent negotiations and the higher weight of digital in communication expenses.”
Copyright (c) 2018 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.