Update shared on03 Sep 2025
Fair value Increased 2.17%Despite concerns over Gucci’s weakness, margin pressure, and tepid Asia-Pacific recovery weighing on sentiment, analyst conviction in Kering’s brand revitalization and strategic repositioning has led to a modest upward revision in the consensus price target from €200.65 to €205.00.
Analyst Commentary
- Bearish Analysts are lowering targets citing persistent weakness in Kering’s core Gucci brand and concerns over sluggish organic revenue growth.
- Indications of ongoing margin pressure amid heightened investment needs and elevated cost bases are contributing to reduced forecasts from cautious analysts.
- Soft recovery prospects for Kering’s Asia-Pacific segment and reluctance from key Chinese consumer cohorts are weighing on sentiment.
- Cautious analysts highlight increased competition across the luxury sector, challenging Kering’s ability to regain lost share.
- Bullish analysts expect brand revitalization initiatives and longer-term repositioning efforts to improve top-line trends, supporting more optimistic target revisions.
What's in the News
- Kering is in advanced talks to sell a majority stake in a Milan luxury property to Qatar’s royal family, as part of a broader effort to divest international properties amid a 15% Q2 sales decline.
- Kering faces ongoing speculation over the possible sale of its stake in Valentino, with the Mayhoola fund denying recent media reports; Kering previously acquired a 30% stake in Valentino with a costly commitment to purchase the remainder by 2028.
- Valentino's CEO is on sick leave, and its handbag unit has been placed under court administration due to supply chain labor issues.
- Luca de Meo, previously CEO of Renault, has been appointed as Kering’s new Chief Executive Officer, formalizing a governance structure separating the roles of Chairman and CEO after the September 9 shareholder meeting.
- An extraordinary shareholders meeting is scheduled for September 9 in Paris.
Valuation Changes
Summary of Valuation Changes for Kering
- The Consensus Analyst Price Target has risen slightly from €200.65 to €205.00.
- The Discount Rate for Kering has fallen slightly from 9.96% to 9.75%.
- The Future P/E for Kering remained effectively unchanged, moving only marginally from 24.07x to 24.48x.
Disclaimer
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