Bank of America Securities analyst Daria Nasledysheva has reiterated their bullish stance on ZGN stock, giving a Buy rating on April 10.
Daria Nasledysheva’s rating is based on a combination of factors, including the current valuation of Ermenegildo Zegna’s stock and its earnings potential. Despite a slower start to the year for the luxury sector, particularly due to challenges in China and the Thom Browne segment, the Zegna brand has shown strong performance and brand momentum in the first quarter of 2025.
Nasledysheva notes that Zegna’s stock is trading at a relatively low price-to-earnings ratio compared to its peers, making it an attractive investment. The company’s midterm guidance of achieving €250-300 million in adjusted EBIT by 2027 further supports this positive outlook. Although short-term challenges persist, the potential for sector re-rating with any positive macroeconomic news, combined with Zegna’s undervaluation, underpins the Buy rating.
In another report released on April 10, Goldman Sachs also maintained a Buy rating on the stock with a $10.80 price target.