Kering Shares Jump 3.53% Midday Following HSBC Upgrade

HSBC's Recommendation Upgrade Boosts Kering

Today's movement coincides with the release on March 9 of a new report by HSBC upgrading its recommendation on Kering from 'hold' to 'buy'. At the same time, the British bank lowered its price target from 340 to 310 euros, which still represents a potential revaluation of about 17.5% from the current price of 263.75 euros. This bullish signal from one of the major international brokers helps fuel interest in the stock at the start of the week. Over the past week, the luxury group's stock has nevertheless declined by 2.86%, and its three-month performance is negative at -7.94%. However, over one year, the stock has gained 5.92%, indicating a contrasting trajectory marked by successive phases of correction and recovery. The group's general assembly is scheduled for May 28, an event that could provide new elements of visibility for shareholders.

Technical Analysis of Kering's Stock

Graphically, the stock has been trading below its 20-day and 50-day moving averages for several sessions, located at 274.68 and 281.93 euros respectively, indicating a still fragile short-term trend. The day before, the stock had closed at 254.75 euros, very close to the identified support threshold of 254.25 euros, a level that seems to have played its role as a technical floor by triggering the rebound observed this Tuesday. The RSI (Relative Strength Index, which measures the momentum of a stock on a scale of 0 to 100) is at 35, in a zone close to overselling, corroborating the idea of a short-term bearish excess. The 200-day moving average, which reflects the underlying trend, stands at 257.82 euros: the current price is repositioning above this long-term benchmark, which is a signal to watch for the continuation of the session. The next major technical obstacle is at the resistance of 288.75 euros, still about 9.5% away from current levels.