BofA upgraded Ermenegildo Zegna to Buy from Neutral with a price target of $16.50, up from $16. The analyst sees the recent share price underperformance as “offering a particularly attractive opportunity into an idiosyncratic growth story” within luxury. The firm expects secular growth in high-end menswear and likes the “solid execution” around the brand turnaround at Zegna. The company’s’ category transition into leisurewear is proving to be successful as Zegna sees traffic, conversion and average purchase value all contributing to growth, the analyst tells investors in a research note.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
