Kering: Barclays downgrades stock
(CercleFinance.com) - On Tuesday Barclays downgraded its Kering shares from "overweight" to "equal weight", taking a big chunk out of its target price for them (from 800 euros to 550 euros - current price about 464 euros, -2%).
In a report, the broker says that it is surprised by the weak positioning of the Gucci brand in China, which it recently visited.
Analysts' investigations and discussions with industry professionals during the trip showed them that Gucci is no longer considered one of the most desirable brands and that there may be a positioning problem.
While it acknowledges that Kering's profile could make it a resilient stock in a downturn and that its valuation is currently attractive, Barclays also says it sees a limited number of "catalysts" that could lead to a stockmarket re-rating.
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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.
In a report, the broker says that it is surprised by the weak positioning of the Gucci brand in China, which it recently visited.
Analysts' investigations and discussions with industry professionals during the trip showed them that Gucci is no longer considered one of the most desirable brands and that there may be a positioning problem.
While it acknowledges that Kering's profile could make it a resilient stock in a downturn and that its valuation is currently attractive, Barclays also says it sees a limited number of "catalysts" that could lead to a stockmarket re-rating.
Copyright (c) 2022 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.