Kering: Goldman Sachs still a buyer
(CercleFinance.com) - The analyst believes that the group's sales and EBIT for FY 2020 are broadly in line with market expectations.
He points out that Gucci brand sales fell by 10.3% in Q4, against a Goldman Sachs forecast of -3.9% and a consensus of -6.4%. Kering's other brands posted positive underlying growth in Q4 (Bottega Veneta +15.7%, Saint Laurent +1%).
"Although we note the group demonstrated strong cost control with adj. EBIT margin 23.9%, vs. GSe/cons of 22.6%/23.5%, respectively. Gucci brand achieved an EBIT margin of 35.1% in FY20 in line with expectations (35.1%/35.2% GSe/cons)," the broker says.
Goldman Sachs confirms its buy rating on the stock with a target price of 720 euros. The share is having a rough ride on Wednesday morning, however, as the biggest faller in the market, down over 7%.
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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.
He points out that Gucci brand sales fell by 10.3% in Q4, against a Goldman Sachs forecast of -3.9% and a consensus of -6.4%. Kering's other brands posted positive underlying growth in Q4 (Bottega Veneta +15.7%, Saint Laurent +1%).
"Although we note the group demonstrated strong cost control with adj. EBIT margin 23.9%, vs. GSe/cons of 22.6%/23.5%, respectively. Gucci brand achieved an EBIT margin of 35.1% in FY20 in line with expectations (35.1%/35.2% GSe/cons)," the broker says.
Goldman Sachs confirms its buy rating on the stock with a target price of 720 euros. The share is having a rough ride on Wednesday morning, however, as the biggest faller in the market, down over 7%.
Copyright (c) 2021 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.