Kering SA, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Oliver Chen from TD Cowen maintained a Hold rating on the stock and has a €345.00 price target.
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Oliver Chen has given his Hold rating due to a combination of factors including Kering SA’s recent performance and strategic initiatives. The company has shown some improvement in its third-quarter sales, particularly with Gucci performing slightly better than expected. This improvement is partly attributed to the company’s focus on innovation and new product offerings, which are seen as essential for driving future growth.
However, Chen also notes that challenges remain, particularly in the Chinese market where Kering lags behind competitors like LVMH. While there are positive signs, such as increased foot traffic and engagement with new collections, the overall pace of recovery in key markets like China is slower than desired. Additionally, while Kering is taking steps to strengthen its financial position, the current market conditions and competitive landscape warrant a cautious approach, justifying the Hold rating.
Chen covers the Consumer Cyclical sector, focusing on stocks such as Tapestry, Kering SA, and LVMH Moet Hennessy Louis Vuitton. According to TipRanks, Chen has an average return of 6.6% and a 52.61% success rate on recommended stocks.
In another report released on October 20, Bernstein also maintained a Hold rating on the stock with a €180.00 price target.