Analysts have raised Ermenegildo Zegna’s price target to $9.80, citing strong positioning in luxury ready-to-wear, robust DTC growth, expanding new clientele, and sustainable brand strength.
Analyst Commentary
- JPMorgan views Zegna as strongly positioned within the very high-end ready-to-wear segment, citing exclusivity and direct supply advantages.
- Bullish analysts expect double-digit earnings growth over the next three years.
- Positive direct-to-consumer (DTC) momentum was highlighted, with DTC sales up 7.5%.
- Growth is being driven by bespoke customer engagement and successful recruitment of new clientele.
- Timeless and relevant product offerings are supporting brand strength and underpinning higher price targets.
What's in the News
- Announced a private placement of 14,121,062 treasury shares at $8.95 each, raising $126.4 million, with Venezio Investments Pte. Ltd as an investor.
- Added to multiple Russell indices including Russell 2000, 2500, 3000, and associated Growth and Small Cap benchmarks, enhancing index presence and visibility.
Valuation Changes
Summary of Valuation Changes for Ermenegildo Zegna
- The Consensus Analyst Price Target has risen slightly from $9.39 to $9.80.
- The Consensus Revenue Growth forecasts for Ermenegildo Zegna has significantly risen from 3.4% per annum to 4.6% per annum.
- The Future P/E for Ermenegildo Zegna has significantly risen from 23.75x to 27.13x.
Disclaimer
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