Kering: Invest Securities cuts target price
(CercleFinance.com) - Invest Securities maintains its "neutral" rating on Kering shares, having reduced its target price for them from 719 euros to 658 euros, explaining that it expected a clear turnaround in growth in Q3 2021, due to Gucci, although not quite of this magnitude.
Gucci certainly appears penalised by a transition period, with the launch of major new collections, however, it still suffers from its exposure to wholesale, where sales are still down -19% relative to 2020, the analyst points out.
While Gucci's performance remains pivotal, overall organic growth (+12.2% in Q3) remains sound, thanks to a continued exceptional performance of YSL (+28%) and designer brands, he adds however.
Kering shares are currently big fallers in a flat index in Paris - down almost 4% at about 626 euros - an hour into trading on Wednesday.
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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.
Gucci certainly appears penalised by a transition period, with the launch of major new collections, however, it still suffers from its exposure to wholesale, where sales are still down -19% relative to 2020, the analyst points out.
While Gucci's performance remains pivotal, overall organic growth (+12.2% in Q3) remains sound, thanks to a continued exceptional performance of YSL (+28%) and designer brands, he adds however.
Kering shares are currently big fallers in a flat index in Paris - down almost 4% at about 626 euros - an hour into trading on Wednesday.
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.