Kering: AlphaValue downgrades stock
(CercleFinance.com) - AlphaValue says that it has downgraded its rating on the Kering share to "accumulate" versus "buy", having set a target price at 632 euros (current price: 547.
5 euros, -1%).
While it highlights the share's less demanding valuation relative to to those of its peers in the luxury sector, as well as the turnaround operated by the brands Yves Saint Laurent and Bottega Veneta, analysts also underline Gucci's high level of dependence on the tourism sector, which has been hammered by the pandemic.
AlphaValue also says that it is cautious on the share due to an investigation for tax fraud and money laundering opened on the group in France and in light of Gucci's expansion plans, a decision that could be "double-edged" whereas its rivals Hermès and LVMH are concentrating the scarcity effect of their products.
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.
5 euros, -1%).
While it highlights the share's less demanding valuation relative to to those of its peers in the luxury sector, as well as the turnaround operated by the brands Yves Saint Laurent and Bottega Veneta, analysts also underline Gucci's high level of dependence on the tourism sector, which has been hammered by the pandemic.
AlphaValue also says that it is cautious on the share due to an investigation for tax fraud and money laundering opened on the group in France and in light of Gucci's expansion plans, a decision that could be "double-edged" whereas its rivals Hermès and LVMH are concentrating the scarcity effect of their products.
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.