Balanced Outlook on Gucci: Early Recovery Signs Offset by Ongoing Execution and Demand Risks Supporting Hold Rating

TD Cowen analyst Oliver Chen maintained a Hold rating on Kering SA today and set a price target of €330.00.

Oliver Chen has given his Hold rating due to a combination of factors related to both recovery potential and remaining execution risks. He sees encouraging signs in Gucci’s trajectory, including better-than-expected fourth-quarter results, stabilization in North America, and management’s clear roadmap for FY26 as a “construction year” focused on mix, wholesale normalization, and efficiency gains.

At the same time, he notes that overall traffic remains soft, particularly in Asia and tourism-driven Europe, while Gucci’s creative and management reset is still in its early stages and carries meaningful execution risk. Although cost savings, deleveraging, and store rationalization support margin rebuilding and justify a higher price target, the uncertainty around the full demand recovery and timing of growth normalization keeps the risk/reward balanced, supporting a Hold rather than a more aggressive rating.

According to TipRanks, Chen is a 4-star analyst with an average return of 4.8% and a 50.00% success rate. Chen covers the Consumer Cyclical sector, focusing on stocks such as Sally Beauty, Compagnie Financiere Richemont SA, and LuxExperience.

In another report released yesterday, UBS also maintained a Hold rating on the stock with a €345.00 price target.