Kering Shares Drop Nearly 6% Over the Week in a Weakened Luxury Market
The luxury group Kering had a challenging week on the financial markets, recording a decline of 5.68% to close at 264.15 euros on Friday, January 30. This underperformance comes as the luxury sector is going through a delicate phase, marked by a slowdown in demand in an uncertain economic and geopolitical environment.
Technical Indicators Highlight Tension
The analysis of technical indicators reveals a tense situation for Kering's stock. The Relative Strength Index (RSI) stands at only 19 points, a level significantly in the oversold zone, reflecting the intensity of the selling pressure recently exerted on the stock. This signal generally indicates an excessive short-term bearish movement. Concurrently, the stock price is now below all its significant moving averages: 289.66 euros for the 20-day average and 294.99 euros for the 50-day average. This configuration confirms a well-established short and medium-term bearish dynamic. Only the 200-day moving average, located at 246.14 euros, remains below the current price, offering a potential distant support point. The negative quarterly performance of 18.95% further illustrates the magnitude of the downturn suffered by the group since October, in a deteriorating sectoral context that weighs on all French luxury stocks.
Analyst Recommendations and Valuation Adjustments
On the front of analyst recommendations, Singapore's DBS Bank intervened on January 27 with a notable adjustment in its valuation. The institution raised its price target from 164 to 226 euros, an increase of nearly 38%, while maintaining a 'hold' rating on the stock. This substantial revaluation occurs as the stock undergoes a significant correction. However, this new target remains below the current price level, suggesting continued caution regarding the group's prospects. Investors are now awaiting the publication of the annual 2025 results, scheduled for February 10, which should shed light on the operational trajectory of the luxury specialist. The sectoral context remains closely monitored, especially following the results published by LVMH on January 27, which revealed an organic growth of only 1% in the fourth quarter in a disturbed environment.
