Kering SA: Hold Rating Amid Mixed Signals and Market Challenges

TD Cowen analyst Oliver Chen has maintained their neutral stance on 0IIH stock, giving a Hold rating on March 10.

Oliver Chen has given his Hold rating due to a combination of factors influencing Kering SA’s current market position. While there is optimism surrounding the brand’s focus on innovation and new product launches, particularly at Gucci, there are ongoing challenges with double-digit negative trends. The less appealing carryover products have contributed to these challenges, and despite efforts to revamp core collections, the impact remains uncertain.
Chen also notes stable trends in the Asia-Pacific region and China, which provide some encouragement. However, there are concerns about negative traffic trends and potential slowdowns in the U.S. market amidst current volatility. The stock’s performance, with a year-to-date increase of 5%, has led to a P/E multiple expansion, but the success of new products at Gucci remains the critical catalyst for future growth. Given these mixed signals, Chen maintains a cautious outlook, resulting in a Hold rating.

In another report released on March 10, Bernstein also maintained a Hold rating on the stock with a €250.00 price target.