Ermenegildo Zegna upgraded to Buy from Neutral at Goldman Sachs

Goldman Sachs upgraded Ermenegildo Zegna to Buy from Neutral with a price target of $18.70, up from $17, implying 65% upside as of Tuesday’s close. The analyst has consistently viewed the fundamental investment case for Zegna as positive, and given the recent underperformance, the firm now sees the stock’s valuation as more attractive. Zegna’s medium-term targets announced look for over a 10% annual sales growth over the medium term, the analyst tells investors in a research note. Goldman believes the market is underappreciating Zegna’s skew to high-end consumers.