Kering: Credit Suisse more optimistic
(CercleFinance.com) - This morning Credit Suisse analysts confirmed their "outperform" rating on the share of French luxury group Kering, following the recent investor day devoted to Gucci.
Alongside this positive rating, they have raised their target price from 478.7 euros to 540 euros (+12.8%).
According to their research report, the Gucci story is not over yet. Credit Suisse notes from the event organised by Kering that the general opinion is that it is too early to be cautious about Gucci, and that the share's upside potential has not yet exhausted, despite its recent performance. For Gucci, the trend should remain strong for several quarters, we read.
"Management appears confident that Gucci will soon be another Louis Vuitton both in size and profitability," the report adds. Analysts believe that Kering's long-term targets for sales (10 billion euros) and operating margin (over 40%) are credible.
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.
Alongside this positive rating, they have raised their target price from 478.7 euros to 540 euros (+12.8%).
According to their research report, the Gucci story is not over yet. Credit Suisse notes from the event organised by Kering that the general opinion is that it is too early to be cautious about Gucci, and that the share's upside potential has not yet exhausted, despite its recent performance. For Gucci, the trend should remain strong for several quarters, we read.
"Management appears confident that Gucci will soon be another Louis Vuitton both in size and profitability," the report adds. Analysts believe that Kering's long-term targets for sales (10 billion euros) and operating margin (over 40%) are credible.
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.