Kering Stock Rises 4% and Challenges Its 50-Day Moving Average
The luxury group's stock markedly recovers mid-session in a rising Paris market where the luxury segment is regaining strength. This movement comes after several sessions of weakness, with the stock approaching a closely watched technical threshold.
A 3.46% Rebound Bringing the Stock Close to the 50-Day Moving Average
Kering's stock gains 4% to €249.35 at midday, among the highest rises in the CAC 40, as the Paris index advances by 0.81%. The stock moves above its MM20 (€239.75) with a gap of 3.46%, and comes strictly close to its MM50 at €247.72, which becomes the next technical threshold to cross.
The MM200, at €272.54, remains out of reach at nearly 9% above the current price, indicating that the medium-term trend is still downward despite today's rebound. The RSI at 48 indicates a return to neutral territory, after several sessions of selling pressure. Today's movement mitigates the quarterly decline of 14.1%, without erasing it, while the stock maintains a performance of 41.55% over one year.
General Assembly Tomorrow and a Valuation That Remains Tight Through 2026
The rebound occurs at a time when the Parisian luxury segment is generally recovering, following a market that is regaining an appetite for risk. However, the sector's situation remains challenging: jewelry and gold sales in China fell by 21.3% year-on-year in April according to the NBS, and total Chinese retail sales barely increased by 0.2% year-on-year, which structurally weighs on luxury majors exposed to the Chinese market.
Regarding valuation, according to the consensus of surveyed analysts, the stock is trading at about 37.7 times the earnings of the current fiscal year and 25.0 times those of 2027, multiples that reflect high expectations for a recovery in results. The latest target price downgrade on May 21 and the stock nearing its support at €227.25 on May 18 illustrate these concerns. The next important event is the general assembly on May 28, tomorrow.
