Kering Falls 2.2% in Session Despite Bernstein's Target Increase

Current Trading Session

Kering's stock is down 3.3% this Thursday, January 15 at midday, trading at 301 euros compared to 311.25 euros the day before. The share of capital traded remains very low at 0.05%, indicating a quiet session for the French luxury group. Over the week, the stock has shown almost no performance change at 0.03%, confirming a phase of hesitation after the rebound at the start of the year. Over three months, however, the stock has gained 1.84%, while the annual performance remains impressive at 38.05%, reflecting a spectacular recovery from the lows of 2025. The price is now slightly above its 50-day moving average, located at 303.02 euros, a technical signal that remains favorable despite today's decline. The RSI is at 55, in a neutral zone, indicating a balance between buyers and sellers with no signs of overheating or overselling. The stock is approaching the technical support threshold at 286.50 euros, but remains far from the recently breached resistance at 317.40 euros. The MACD displays a positive histogram at 0.53, confirming a short-term bullish momentum that remains intact despite today's correction.

Bernstein's Updated Assessment

Bernstein has raised its price target from 240 to 250 euros while renewing its underperform rating on the stock, a modest adjustment motivated by the consideration of the divestiture of the Kering Beauté division. This modest increase comes in a context where Bernstein estimates that the Chinese market may experience a gradual U-shaped recovery this year, without fundamentally altering its cautious view on the group. For 2026, the broker anticipates a revenue decline of 2.3%, a current operating income decrease of 11.1%, and a drop in earnings per share of 14.6%, forecasts that are lower than market consensus. This new target of 250 euros suggests a potential downside of 18% from the current price, explaining the market's negative reaction despite the technical increase. Bernstein's underperform recommendation contrasts with that of RBC Capital, which had raised its target to 340 euros on January 7 with a market perform recommendation. This divergence illustrates the ongoing uncertainties about the group's recovery trajectory, particularly for Gucci, its flagship brand which represents nearly half of the revenue. The completion of the divestiture of Kering Beauté to L'Oréal, expected in the first half of 2026, will be a key event to reduce the group's debt and refocus its activities on luxury and leather goods.