Kering: Invest Securities raises target price
(CercleFinance.com) - While confirming its buy rating Kering shares, this morning Parisian broker Invest Securities has welcomed "the Gucci prodigy".
It has therefore raised its target price for the share from 547 euros to 610 euros (+11.5%).
The broker's report underlines that the very strong growth of the star Kering brand "(is thanks) in first place to the increasing importance of Millennials (in particular in China), which is associated with the breakthrough of 'online' sales.
In this context, Kering's aims, which ultimately expects an annual turnover of ten billion euros for Gucci, did not surprise. More than the level, it is actual results over time (2020 according to Invest Securities) could exceed expectations. This would leverage free cash flow generation in a situation of controlled capital intensity and controlled costs, leading to yet another revision in the broker's target price, Invest Securities argues.
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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.
It has therefore raised its target price for the share from 547 euros to 610 euros (+11.5%).
The broker's report underlines that the very strong growth of the star Kering brand "(is thanks) in first place to the increasing importance of Millennials (in particular in China), which is associated with the breakthrough of 'online' sales.
In this context, Kering's aims, which ultimately expects an annual turnover of ten billion euros for Gucci, did not surprise. More than the level, it is actual results over time (2020 according to Invest Securities) could exceed expectations. This would leverage free cash flow generation in a situation of controlled capital intensity and controlled costs, leading to yet another revision in the broker's target price, Invest Securities argues.
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.