Update shared on03 Oct 2025
Fair value Increased 8.28%Kering Price Target Raised as Analysts Cite Improved Profit Outlook
Kering's analyst price target rose by nearly €17 to €225.74. Analysts pointed to upgraded earnings expectations and confidence in profit margins as the key factors driving the increase.
Analyst Commentary
Recent research notes reflect a shifting consensus on Kering, as analysts assess the company's trajectory in light of price target increases and an upgraded recommendation.
Bullish Takeaways
- Bullish analysts highlight improved margin visibility, suggesting a more resilient profit outlook for the coming quarters.
- Price targets have been substantially raised, which underlines expectations for recovering brand momentum and potential upside in share valuation.
- The upgrade to a Buy rating signals renewed confidence in Kering's execution strategy, particularly in key luxury segments.
- Positive sentiment centers on Kering's ability to adapt in a challenging retail environment. This adaptability may facilitate long-term growth.
Bearish Takeaways
- Some analysts maintain a cautious stance, as reflected in the retention of a Neutral rating despite higher price targets.
- Concerns persist around the pace of recovery, especially if macroeconomic headwinds impact consumer demand for luxury goods.
- Cautious commentary also notes potential execution risks as Kering implements strategic changes across its brand portfolio.
What's in the News
- Kering is reportedly holding advanced talks with Qatar’s royal family to sell a majority stake in a luxury Milan property, following a 15% sales drop in the second quarter. (Il Corriere della Sera)
- Speculation surrounds a possible sale of Kering's stake in fashion house Valentino. Mayhoola, its joint venture partner, has publicly denied the reports. Kering declined to comment. (Reuters, Il Corriere della Sera)
- Kering’s acquisition of a 30% stake in Valentino for $1.7 billion in 2023 and the obligation to acquire the remainder by 2028 is under scrutiny, given the sector's slowdown and company debt levels. (Company Reports)
- A Special/Extraordinary Shareholders Meeting is scheduled for September 9, 2025, in Paris, with a focus on executive and director remuneration policies and the appointment of Luca de Meo as Director. (Company Announcement)
Valuation Changes
- Consensus Analyst Price Target has increased from €208.48 to €225.74, reflecting a stronger outlook on future company value.
- Discount Rate remains virtually unchanged, moving marginally from 9.53% to 9.53%.
- Revenue Growth expectations have declined, from 3.35% to 2.98% annually.
- Net Profit Margin has risen from 7.76% to 8.03%, indicating improved profit efficiency.
- Future Price/Earnings (P/E) ratio has increased from 24.75x to 26.20x, which suggests a higher valuation relative to projected earnings.
Disclaimer
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