Kering: share price rises, Deutsche Bank upgrades to buy
November 03, 2023 at 04:40 am EDT
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Kering gained ground on the Paris Bourse on Friday after Deutsche Bank upgraded its recommendation on the French luxury goods group to "buy".
After twenty minutes of trading, the share gained 1.7%, the second-biggest gain on the CAC 40, behind Worldline (+2.4%), which continued its technical rebound.
In a research note, analysts at the German bank believe that the turnaround achieved by the owner of Saint Laurent, Bottega Veneta and Balenciaga has been underestimated by the market.
Kering remains one of the world's largest luxury groups, but also one of the most controversial stocks in the sector", they point out in their study.
"Although the company is currently in recovery, we believe that the medium-term potential of the Gucci brand is significantly undervalued", the analysts add.
Despite the current economic slowdown, Deutsche Bank thus sees an attractive profile for the stock from a medium-term perspective, and for the most patient investors.
Its price target, raised from 510 to 540 euros, suggests a potential upside of almost 40%.
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A global Luxury group, Kering manages the development of a series of renowned Houses in Fashion, Leather Goods, and Jewelry: Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, Dodo, Qeelin, Ginori 1735, as well as Kering Eyewear and Kering Beauté.
By placing creativity at the heart of its strategy, Kering enables its Houses to set new limits in terms of their creative expression while crafting tomorrow's Luxury in a sustainable and responsible way. It captures these beliefs in its signature: Empowering Imagination.
In 2023, Kering had 48,964 employees and restated revenue of EUR 19.6 billion.
At the end of 2023, the Group had a network of 1,771 stores under its own management, located primarily in Western Europe (367), North America (316), Japan (238), and in emerging countries (698).
Net sales are distributed geographically as follows: Western Europe (27.6%), Japan (7.2%), Asia/Pacific (35%), North America (23%) and other (7.2%).
KERING 
