Kering SA (EPA:KER) Just Reported And Analysts Have Been Lifting Their Price Targets

As you might know, Kering SA (EPA:KER) recently reported its half-year numbers. It was a credible result overall, with revenues of €7.6b and statutory earnings per share of €9.24 both in line with analyst estimates, showing that Kering is executing in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Kering after the latest results.

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After the latest results, the consensus from Kering's 21 analysts is for revenues of €15.0b in 2025, which would reflect a perceptible 4.8% decline in revenue compared to the last year of performance. Statutory earnings per share are forecast to decrease 7.5% to €5.50 in the same period. In the lead-up to this report, the analysts had been modelling revenues of €15.2b and earnings per share (EPS) of €6.31 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a real cut to EPS estimates.

Check out our latest analysis for Kering

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 5.0% to €198, suggesting the revised estimates are not indicative of a weaker long-term future for the business. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Kering, with the most bullish analyst valuing it at €360 and the most bearish at €145 per share. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 9.4% by the end of 2025. This indicates a significant reduction from annual growth of 4.4% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 6.4% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Kering is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Kering's revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Kering going out to 2027, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Kering that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.