KERING : Stifel confirms its recommendation on the stock
March 12, 2024 at 09:54 am EDT
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Stifel maintains its 'hold' rating on Kering shares, with an unchanged target price of 420 euros.
However, the analyst indicates that it has reduced its EBIT forecasts for FY24 and FY25 by -5% and -3%, respectively, due to lower margin assumptions for 2024 for all brands.
Specifically, Stifel now models a margin of 30.5% for Gucci , 29.5% for YSL, 18.5% for Bottega Veneta, and 5.5% for Other Brands.
'BV and Balenciaga should ultimately strengthen brand value across Kering's portfolio, but could put further pressure on volumes', the broker adds.
According to Stifel, profitability should remain under pressure with high reinvestment requirements.
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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 
