HSBC announced on Friday that it had lowered its target price for Kering shares from 440 to 400 euros, deploring the lack of visibility surrounding the turnaround of its flagship brand, Gucci.
In a note published at the end of the morning, the broker believes that the arrival of a new creative director (Sabato de Sarno) more focused on the brand's tradition should soon bear fruit, as should the appointment of a new CEO (Jean-François Palus) and the increase in marketing expenditure.
HSBC has therefore included the scenario of a return to double-digit growth for the Italian label in the course of the 4th quarter, while acknowledging a lack of conviction around this hypothesis.
The broker acknowledges that the valuation of Kering shares may seem attractive at current levels, with a PER 2024 of 17.5x, i.e. a 29% discount to its peers in the luxury goods sector, but says it sees no immediate catalyst.
Its recommendation therefore remains 'hold'.
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A global Luxury group, Kering manages the development of a series of renowned Houses in Fashion, Leather Goods, and Jewelry: Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, Dodo, Qeelin, Ginori 1735, as well as Kering Eyewear and Kering Beauté.
By placing creativity at the heart of its strategy, Kering enables its Houses to set new limits in terms of their creative expression while crafting tomorrow's Luxury in a sustainable and responsible way. It captures these beliefs in its signature: Empowering Imagination.
In 2023, Kering had 48,964 employees and restated revenue of EUR 19.6 billion.
At the end of 2023, the Group had a network of 1,771 stores under its own management, located primarily in Western Europe (367), North America (316), Japan (238), and in emerging countries (698).
Net sales are distributed geographically as follows: Western Europe (27.6%), Japan (7.2%), Asia/Pacific (35%), North America (23%) and other (7.2%).
KERING 
