(Boursier.com) — Kering outperformed the market in the morning, with a gain of 1.7% to 666.5 euros. The title of François-Henri Pinault’s group is one of Berenberg’s favorite choices in the consumer discretionary compartment. The specialist explains that as the world’s second-largest luxury group, with an enviable set of ‘soft’ brands, Kering enjoys all the advantages of size and fulfills all the conditions to be a long-term structural winner in the area.
After several years of phenomenal growth, investors have expressed concerns about the momentum of Kering’s main brand, Gucci (80% of the group’s profits). However, the broker believes that the acceleration of investments and the strengthening of the product pipeline will help to revive the momentum and close the valuation gap with peers.
As an industry leader in digital and ESG, it’s important not to overlook Kering’s strong positioning and top-notch execution. Offering attractive growth, profitability, cash generation and a value-creating M&A option, Kering is one of the most attractive stocks in the luxury sector, yet it trades at a significant discount to its peers, concludes the analysis, to the ‘purchase’ on the title with a target of 900 euros.
Goldman Sachs has also upgraded the file from 860 to 892 euros while maintaining its ‘buy’ rating.
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