Kering lost nearly 1.5% in Paris after HSBC announced it had lowered its price target on the stock from 440 to 400 euros, lamenting 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 Kering's valuation may seem attractive at current levels, with a PER 2024 of 17.5x, a 29% discount to its luxury sector peers, but says it sees no immediate catalyst.

Its recommendation therefore remains 'hold'.

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