Update shared on18 Sep 2025
Fair value Increased 1.70%Kering’s consensus price target has risen modestly to €208.48 as bullish analysts anticipate improved brand execution and a stabilizing luxury market, though concerns persist around Gucci’s performance, Asian demand softness, and margin pressures; fair value revised up from €205.00.
Analyst Commentary
- Bullish analysts see upside potential, triggering upgrades and higher targets based on expectations of improved brand execution and stabilizing luxury demand.
- Bearish analysts cite persistent headwinds for Kering’s flagship brands, notably Gucci, resulting in reduced earnings forecasts and lower price targets.
- Concerns persist regarding ongoing softness in China and broader Asian markets, weighing on group sales momentum.
- Margin pressure from heavy reinvestment in brand turnaround strategies and increased marketing spend continues to be highlighted by several analysts.
- Valuation remains a dividing factor, with some seeing current levels as attractive entry points while others view downside risk as not fully captured.
What's in the News
- Kering is in advanced talks with Qatar's royal family to sell a majority stake in a Milan luxury property, amid broader efforts to sell properties in New York, Milan, and Paris after a 15% Q2 sales decline.
- Reports of Kering and Mayhoola considering a sale of their jointly owned fashion house Valentino were denied by Mayhoola, though speculation persists given Kering's growing debt and recent luxury sector slowdown.
- Kering bought a 30% stake in Valentino for $1.7 billion with a commitment to purchase the remaining 70% by 2028, a deal now seen as a liability due to sector headwinds and potential EUR 4 billion cost.
- Valentino’s handbag unit was recently placed under court administration over supply chain labor issues, and its CEO Jacopo Venturini is on sick leave.
- Kering will hold an extraordinary shareholders’ meeting to approve executive and board remuneration policies and appoint Luca de Meo as a director for a non-standard term.
Valuation Changes
Summary of Valuation Changes for Kering
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from €205.00 to €208.48.
- The Consensus Revenue Growth forecasts for Kering has fallen slightly from 3.5% per annum to 3.3% per annum.
- The Discount Rate for Kering has fallen slightly from 9.75% to 9.53%.
Disclaimer
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