Ermenegildo Zegna (ZGN – Research Report), 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 $8.00 price target.
Oliver Chen’s rating is based on a combination of factors that reflect both positive progress and ongoing challenges for Ermenegildo Zegna. The company reported decent first-quarter results with a slight year-over-year increase, primarily driven by direct-to-consumer sales and strong performance in the Americas. However, strategic headwinds in the wholesale segment across brands remain a concern, particularly for Thom Browne, which experienced a significant decline.
Despite the challenges, Zegna’s reaffirmation of its full-year guidance and plans to raise prices amid tariff pressures indicate a proactive approach to maintaining profitability. The brand’s growth in the Americas and EMEA, along with positive developments at Tom Ford, are encouraging signs. Nevertheless, cautious optimism prevails due to the need for further brand awareness and consumer engagement, especially in Greater China and the wholesale rationalization at Thom Browne. These mixed factors contribute to the Hold rating, with a price target of $8 remaining unchanged.
According to TipRanks, Chen is a 4-star analyst with an average return of 4.4% and a 50.80% success rate. Chen covers the Consumer Cyclical sector, focusing on stocks such as Ermenegildo Zegna, Capri Holdings, and Costco.