Kering Falls by 1.82% on Monday, January 26, Jefferies Lowers Target to 290 Euros
Kering dropped by 1.82% this Monday, January 26, to 274.95 euros, following Jefferies' reduction of its price target from 310 to 290 euros. The stock continues its weekly decline of 8.78%, amid exposure to the bankruptcy of Saks Global and cautious analyst recommendations.
Jefferies Lowers Kering's Price Target
Jefferies lowered its price target on Kering from 310 to 290 euros this Monday, while maintaining a 'hold' recommendation. This revision, part of a series of adjustments in the luxury sector, accompanies a 1.82% drop in the stock to 274.95 euros during the session. The group is approaching its support threshold of 269.65 euros, already tested last January 20 during a 2.6% decline. The resistance threshold remains at 317.40 euros, a level not reached since January 15. Over the week, the stock has recorded a drop of 8.78%, bringing the quarterly decline to 13.35%. An RSI at 35 indicates a weakness zone close to overselling, without signaling an imminent rebound. A negative MACD histogram at -4.08 confirms persistent selling pressure, while the stock is trading well below its 50-day and 200-day moving averages, set at 299.78 euros and 243.63 euros respectively. This technical configuration indicates a structural bearish trend, although the stock still shows a year-on-year increase of 12.22%.
Multiple Tensions Impact Kering's Performance
The downward movement is part of a context of multiple tensions for the group. Kering ranks second among the unsecured creditors of Saks Global with a claim of 60 million dollars, behind Chanel at 136 million dollars, as the American retailer filed for Chapter 11 bankruptcy protection on January 14. This exposure adds to the operational difficulties of Gucci, the group's flagship brand, and high debt levels. Analysts remain cautious: Bernstein recently lowered its target to 250 euros with an underperform rating, while Equita SIM targets 295 euros with a hold recommendation. Only RBC Capital has a more optimistic target of 340 euros since January 7, with a market perform recommendation. The planned completion in the first half of 2026 of the sale of Kering Beauté to L'Oréal for 4 billion euros in cash should, however, provide a financial relief to the group, allowing it to reduce its debt and refocus its activities on fashion and leather goods.
