Kering: share price rises sharply, SG upgrades to buy
July 19, 2023 at 05:42 pm IST
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Kering recorded the biggest rise in the CAC 40 index on the Paris Bourse on Wednesday, after Société Générale upgraded its recommendation on the stock to 'buy'.
Shortly before 2:00 pm, the French luxury goods group's shares gained 5.4%, while the leading index rose by just 0.3%.
SG has raised its recommendation to 'buy' from 'hold', with a price target raised from 460 to 650 euros, reflecting a potential upside of almost 32% compared with Tuesday's closing price.
In their note, analysts point out that the stock was trading yesterday evening at a P/E discount of around 45% compared with the rest of the stocks they follow.
The research firm also points to an "unprecedented" discount to the MSCI sector index, which it attributes to market concerns over the Gucci brand's turnaround and the evolution of the management team.
On the latter point, the appointments of Francesca Bellettini, CEO of Yves Saint Laurent, as Deputy CEO of Kering in charge of the development of the houses, and of CFO Jean-Marc Duplaix as Deputy CEO in charge of operations and finance, should reassure investors, SG believes.
On the stock market, Kering shares are up 9% since the start of the year, compared with a 13.5% gain for the CAC.
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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 
