Kering Shares Fall 5% at Opening Following Disappointing LVMH Results

Investment Banks Adjust Valuations

Two investment banks have revised their valuation of the stock within 48 hours. DBS Bank significantly raised its price target on January 27, from 164 to 226 euros, while maintaining a neutral recommendation to hold. Despite this substantial adjustment of 37.8%, the target remains 13.3% below the current price of Kering. The day before, Jefferies had already lowered its target from 310 to 290 euros, also maintaining a neutral stance on the stock. This new estimate implies an upside potential of 11.2% compared to the day's trading. These successive revisions reflect a climate of cautious anticipation ahead of the upcoming 2025 annual results publication, scheduled for February 10. The markets will particularly scrutinize the evolution of sales of Gucci, the group's main brand, in an environment of slowing demand for luxury products.

Technical Weakness Intensifies

Today's decline accentuates the technical weakness of the stock, which now stands at 260.80 euros, 12.5% below its 50-day moving average established at 298.01 euros. The crossing below this technical threshold confirms the selling pressure that has been exerted on the stock for several sessions. The RSI is at 32, a level approaching the oversold zone at 30, signaling a significant correction without yet reaching a point of extreme weakness. The stock has fallen 3.28% over seven days and 20.46% over three months, illustrating a persistent downward dynamic. The technical support is located at 269.65 euros, a level now breached downward during this session. The high monthly volatility of 10.30% reflects the instability of the stock's path in a context of sector uncertainties. The only positive note, the stock remains above its 200-day moving average set at 244.72 euros, preserving a long-term trend that remains positive.