Ermenegildo Zegna initiated with an Underweight at Morgan Stanley

Morgan Stanley initiated coverage of Ermenegildo Zegna (ZGN) with an Underweight rating and $7.20 price target The company is part-way through a strategic realignment across its brands, and this will cause temporary financial pressures as the required operational investments meet a “subdued” luxury environment, the analyst tells investors in a research note. The firm sees Zegna’s valuation as full given the near-term uncertainty.