Update shared on 14 Nov 2025
Fair value Increased 2.64%Kering's analyst fair value estimate has risen modestly, up approximately EUR 7.50 to EUR 291. Analysts cite increasing price targets in response to recent shifts in sector leadership and a stable profit outlook.
Analyst Commentary
Recent analyst research presents a nuanced outlook for Kering, reflecting both optimism and caution regarding the company’s valuation, sector dynamics, and growth prospects. Below are summarized key bullish and bearish perspectives.
Bullish Takeaways- Bullish analysts have increased Kering’s price targets, some significantly. This signals heightened confidence in the company’s mid-term potential and the positive impact of changes in sector leadership.
- Several price target upgrades highlight expectations for ongoing profitability and renewed momentum from recent strategic leadership shifts.
- Kering’s recognition as a top pick among luxury names underscores its positioning to benefit from broader sector trends and creative leadership transitions.
- Bearish analysts express concern over limited further upside, particularly as Kering’s share price has already doubled since recent executive appointments. This has resulted in valuation downgrades.
- The loss of the Gucci Beauty license is viewed as a significant headwind that could affect recurring revenue streams and overall brand strength in the fragrance category.
- There are signals that luxury sector growth may slow to below historical norms, suggesting that Kering’s growth trajectory may be less robust in the medium term.
- Some price target raises are accompanied by cautious or neutral ratings, indicating that near-term execution risks or macro headwinds could limit immediate gains.
What's in the News
- Kering is in advanced discussions to sell its beauty business to L'Oreal for approximately $4 billion, with an announcement expected as soon as next week (The Wall Street Journal).
- Kering and L'Oreal are entering a long-term strategic partnership in luxury beauty and wellness. This partnership includes the sale of the House of Creed and plans for future collaborations in wellness and longevity (Company Announcement).
- The agreement will see L'Oreal acquire exclusive 50-year licenses for the creation, development, and distribution of fragrance and beauty products for Kering's iconic brands, including Gucci, Bottega Veneta, and Balenciaga (Company Announcement).
- A strategic committee will be created to coordinate between the Kering and L'Oreal brands. The committee aims to maximize the impact of their partnership and future joint ventures (Company Announcement).
- The transaction, valued at EUR4 billion and expected to close in the first half of 2026, will result in Kering receiving ongoing royalties from L'Oreal for its licensed brands (Company Announcement).
Valuation Changes
- Fair Value Estimate has risen slightly, from €283.73 to €291.23.
- Discount Rate increased modestly, moving from 9.32% to 9.48%.
- Revenue Growth expectations have edged down a little, from 3.20% to 3.16%.
- Net Profit Margin estimate improved marginally, rising from 8.58% to 8.65%.
- Future P/E ratio has increased, from 30.41x to 31.16x.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.