Kering Shares Up 3% Today, Marking Its Best Month
Shares of Gucci's owner sharply accelerated at midday, within a decidedly bullish CAC 40. The luxury sector is regaining momentum, with several heavyweights of the sector leading the Parisian index. This movement is accompanied by a recent repositioning of analysts.
Luxury Sector Re-energizes, Several Stocks Advance During the Session
Kering shares gained 2.97% to €251.30, within a CAC 40 up 1% at 8,231.97 points. The stock is among the strongest risers in the Parisian index, alongside other luxury players rebounding this Thursday. Over a month, the stock has recovered 8.26%, although it remains slightly down by 0.93% over three months. Nevertheless, the annual performance is nearly 47%, a consequence of the rebound initiated since spring.
In terms of sector dynamics, recent figures remain mixed: jewelry/gold in China fell by 21.3% year-on-year in April, while Swiss watch exports to Hong Kong increased by 13.5%. This mixed signal did not prevent a return of appetite for the segment's values this Thursday.
Two Brokers Publish Their Targets, Valuation Remains Stretched at 37.8 Times Earnings
Kepler Cheuvreux maintained its buy recommendation with a target of €400 on June 2, representing a potential upside of over 59% from the current price. On the same day, CIC Market Solutions set its target at €340, also recommending a buy, representing a potential of about 35%. According to the consensus of analysts surveyed, the stock is priced at approximately 37.8 times the earnings for the current fiscal year and 25.3 times those of the next.
Regarding indicators, the stock price is above the MM20 (€244.92) and MM50 (€248.65), with respective gaps of 2.42% and 0.88%. The MM200 is further away, at €273.67, which is 8.34% above the price. The RSI at 49 is in a neutral zone, indicating that the day's bullish movement does not, at this stage, create an overheated configuration. The identified resistance at €255.55 is now the closest technical barrier.
