TD Cowen analyst Oliver Chen has maintained their neutral stance on 0IIH stock, giving a Hold rating yesterday.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Oliver Chen has given his Hold rating due to a combination of factors surrounding Kering SA’s current market position and future prospects. While the company is working on enhancing its Gucci product lineup and reducing its wholesale exposure, the anticipated growth for the Gucci brand remains modest, with expectations of continued margin pressures through the first half of 2025.
The stock has seen some upward movement following earnings, driven by positive sentiment towards luxury spending in key markets, but its valuation is notably high compared to its historical average. Additionally, there is a need for visible improvements in Gucci’s performance and margin stabilization before a more favorable rating can be considered. Although there are signs of recovery in the luxury sector, particularly among aspirational customers, Kering’s current initiatives, like the closure of several Gucci outlets, may hinder immediate revenue growth.
In another report released yesterday, Berenberg Bank also maintained a Hold rating on the stock with a €215.00 price target.