Kering Shares Fall 4.15% Midday Despite RBC Capital's Support
On Wednesday, January 7th, the stock of the French luxury group dropped by 4.15% mid-session to 302.45 euros, down from 315.55 euros the previous day. This decline occurs paradoxically as RBC Capital Markets raised its price target from 280 euros to 340 euros while maintaining a 'market perform' recommendation. Trading volumes remain low with only 0.06% of the capital traded, confirming investor caution in an uncertain macroeconomic context for the luxury sector.
Kering Stock Loses 4.15% at Midday on January 7, Erasing Most of the Weekly Rebound
Kering shares dropped 4.15% at midday on January 7, erasing most of the weekly 0.65% rebound. The stock thus fell below the symbolic threshold of 305 euros and is dangerously approaching its technical support at 286.50 euros. Over three months, the performance remains positive at 3.44%, while over one year, the stock shows a remarkable increase of 31.59%, reflecting the recovery from historically low levels around 230 euros in the first quarter of 2025. This decline occurs in a market unfavorable for cyclical consumption and widespread caution on luxury values, with the CAC 40 also retreating this Wednesday. Technical indicators confirm a consolidation phase after several weeks of gains. The RSI is at 66, slightly down but still close to the overbought zone at 70, suggesting a temporary slowdown in bullish momentum. The price is now slightly below its 50-day moving average of 304.36 euros, signaling a short-term caution. Conversely, the MACD histogram remains positive at 1.48, indicating that the underlying trend is still favorable. The 200-day moving average, set at 235.83 euros, confirms a structurally bullish orientation, with the stock trading more than 28% above this key benchmark. The Bollinger Bands frame the price between 285.92 euros and 316.52 euros, leaving little room before a support test.
RBC Capital Markets Raises Price Target to 340 Euros
RBC Capital Markets has raised its price target to 340 euros from 280 euros, while maintaining a 'market perform' recommendation. This 21% increase in the target price now values the stock with a potential upside of 12% compared to the previous day's closing price, but Kering's stock does not benefit from the raised target by RBC to 340 EUR, with market movements overshadowing the analyst's support. The Canadian bank joins Oddo BHF, which had set a target of 322 euros with a neutral recommendation on December 18, showing a gradual convergence of expectations around a range of 320 to 340 euros. However, the consensus among analysts remains marked by notable divergences. While RBC Capital adopts a neutral stance, other institutions are more cautious, such as Rothschild & Co Redburn maintaining a 'sell' recommendation with a target of 240 euros since December 1, or Pekao downgrading the stock to 'sell' on December 3 with a target of 270.42 euros. HSBC keeps its 'hold' recommendation with a lowered target of 340 euros on December 4. These contrasting positions reflect ongoing uncertainties about the group's ability to quickly improve its performance, particularly at Gucci, which accounts for nearly half of the revenue. Luca de Meo has announced an 18-month horizon to return to a growth trajectory, tempering expectations of a rapid improvement.
Kering Continues Its Strategy of Refocusing and Debt Reduction
Kering continues its strategy of refocusing and debt reduction that has been underway for several months. On December 16, 2025, the group finalized a co-investment agreement with Ardian involving a New York property valued at 900 million dollars, allowing it to cash in 587 million euros while retaining commercial use of the location. This operation adds to the divestiture of the beauty division to L'Oréal for 4 billion euros, with the payment expected in the first half of 2026. These sales aim to reduce a net debt that reached 9.5 billion euros in the first half of 2025. Operationally, the group announced on December 19 the acquisition by stages of Raselli Franco Group, an Italian jewelry manufacturer, for an initial 20% stake in the first quarter of 2026 valued at 115 million euros, with a gradual increase to 100% by 2032. This first acquisition made by Luca de Meo since his appointment in September 2025 illustrates the intention to secure the production chain for the group's jewelry houses (Boucheron, Pomellato, Dodo, Qeelin), a segment less exposed to fashion cycles and with more stable revenue recurrence. However, the third quarter 2025 results confirmed the difficulties, with a 10% decrease in revenue to 3,415 million euros and a 14% decline for Gucci alone, reflecting significantly reduced in-store traffic and no new drivers in leather goods.
