Kering gains more than 1% in Paris after HSBC announced today that it was raising its target from 420 to 440 euros, anticipating a "recovery" in business by 2025.

The financial intermediary - which has an "overweight" recommendation on the luxury group - points out that the latter's stated ambition to invest heavily in its brands by 2024 has been favorably received by the market.

In a research note, HSBC points out that Gucci has suffered from Kering's choice to protect the margins of its flagship brand since the pandemic, instead of investing heavily in marketing as other giants in the sector have done.

This strategic turnaround has been welcomed by investors, as illustrated by the 6% jump in the share price in the session following the announcement", says the analyst.

HSBC points out, however, that the timetable for recovery remains uncertain: while no turnaround is in sight in the first half of the year, a gradual improvement should occur in the second half before a recovery is expected in 2025, during which year Kering's organic growth should, according to its estimates, reach 8%, as for the Gucci brand.

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