Gucci’s Early-Stage Turnaround: Improving Brand Momentum but Execution Risk Justifies Hold Rating

Analyst Oliver Chen from TD Cowen maintained a Hold rating on Kering SA and decreased the price target to €310.00 from €345.00.

Oliver Chen has given his Hold rating due to a combination of factors reflecting both improving brand momentum and lingering execution risk. He sees signs that Gucci’s performance is becoming less negative than feared, supported by refreshed creative direction, better digital engagement, and growing appeal among younger customers, all of which could help organic sales modestly outperform consensus expectations. The new leadership team, including the group CEO and Gucci’s CEO, is viewed as capable of driving a more progressive, commercially focused strategy that better balances expressive fashion with core, heritage‑driven products and buy‑now/wear‑now relevance.
At the same time, Chen remains cautious because the turnaround at Gucci is still in its early stages and meaningful, sustained traffic and sales recovery will take time to materialize. He prefers to see clearer and more durable proof of stabilization before adopting a more constructive stance, particularly as key new collections will not fully enter the network until 2026. Reflecting this more balanced risk‑reward profile and the broader pullback in the luxury sector, he reduced his price target by applying a lower earnings multiple to later‑year estimates, which supports maintaining a Hold recommendation rather than upgrading the stock.

Chen covers the Consumer Cyclical sector, focusing on stocks such as Compagnie Financiere Richemont SA, Tapestry, and LuxExperience. According to TipRanks, Chen has an average return of 5.9% and a 52.61% success rate on recommended stocks.

In another report released today, TipRanks – Anthropic also initiated coverage with a Hold rating on the stock with a €272.00 price target.