(CercleFinance.com) – The stock rose nearly 2% at the end of the day. Kering has announced the arrival of Sabato De Sarno as creative director of the house of Gucci. He will start in his new responsibilities as soon as he is released from the obligations related to his current functions at Valentino.
Oddo believes that the Valentino/clothing connotation conveyed by S. De Sarno corresponds well to the repositioning of Gucci desired by the management of Kering (elevation of the brand).
‘ We remain rather cautious: the prospect of recovery still seems uncertain to us at Gucci We do not believe that this appointment fundamentally changes the perception of the Kering stock in the short term and we especially believe that the task of the commercial recovery of the brand could remain for a long time breath’ indicates Oddo.
“We also note that the brand’s position will remain precarious in the short term with an expected performance still down over the next few quarters before the reveal of the new style,” adds the analysis office.
Oddo confirms its neutral opinion on the stock with a target price of 522 E.
‘ The discount of the Kering share is certainly substantial at nearly 35% compared to the LVMH sector benchmark on a PE-VE/EBIT basis, but the share has risen sharply by nearly 17% YTD, like the rest of the sector ‘ underlines the analyst.
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