Kering Shares Plunge Nearly 10%: Gucci Declines Again, Analysts Lower Target

Direct Impact from Tuesday's Published Data

The drop in share price can be directly attributed to the data released on Tuesday evening. Kering reported a stable quarterly revenue, but this apparent resilience hides significant disparities between divisions. Gucci, the core of the group, recorded a further 8% decline in comparable data, continuing a negative trend that heavily impacts the overall valuation. In contrast, the jewelry division reached a historic high with a growth of 22%, while the eyewear division reported its best quarter. The group also finalized three major transactions in beauty, jewelry, and real estate, aimed at strengthening its balance sheet and clarifying its strategic priorities. Despite these operations, it is Gucci's trajectory that remains the focus and fuels the day's correction. In the Paris luxury sector, the pressure is also noticeable: LVMH is down 1.17% and L'Oréal drops 0.65% during the session, but no peer experiences a decline comparable to that of Kering.

Major Banks Lower Price Targets

This Wednesday, two major banks revised their price targets for the stock downwards. UBS lowered its target from EUR 300 to EUR 271, while maintaining a neutral opinion. Deutsche Bank, on the other hand, reduced its target from EUR 290 to EUR 280, also maintaining a hold recommendation. These adjustments now place the potential revaluation between 7.5% and 11% relative to the current price of EUR 252.10, reflecting significant caution regarding the pace of the group's recovery. Technically, the stock sharply broke below its 50-day moving average at EUR 264.40 and is now significantly below its 200-day average (EUR 267.31). The stock is positioned in the lower part of the Bollinger Bands, at 42% of the amplitude between the lower bound (EUR 228.62) and the upper bound (EUR 284.83). The next technical support threshold is at EUR 232.60, a level that could be tested if selling pressure continues. Kering's next scheduled event is the annual general meeting on May 28.