Kering Stock: Stability Following Rise After Annual Results
Kering shares fell by 2.71% this Wednesday midday, trading at 280.20 euros following the announcement of its 2025 annual results the day before. The luxury group reported a significant decline in revenue but performed better than market expectations, and expressed ambitions for a turnaround in the current fiscal year. Additionally, two investment banks raised their price targets for the stock on the same day.
Post-Results Decline and Financial Outlook
The decline in the stock this Wednesday follows the release on Tuesday of the annual accounts of the group. Kering recorded a revenue of 14.7 billion euros for the fiscal year 2025, a contraction of 13% compared to the previous year. Despite this decrease, the parent company of Gucci has consolidated its financial balance sheet and aims for a return to growth starting in 2026. Over the past week, the stock has nevertheless increased by 8.37%, suggesting that the publication had been partially anticipated in previous sessions. Over a year, the performance remains positive at 14.74%, but the stock has seen a decline of 9.74% over three months, indicating a volatile trajectory since the end of last autumn. The next key date in the financial calendar is the general assembly scheduled for May 28, 2026.
Investment Banks Upgrade Price Targets
This Wednesday, two institutions simultaneously raised their target on the stock. TD Cowen increased its price target from 310 to 330 euros, while maintaining its 'hold' recommendation. Morgan Stanley, on the other hand, raised its target from 315 to 330 euros and reiterated its 'overweight' rating. These two targets at 330 euros represent a potential revaluation of about 17.8% compared to the current price of 280.20 euros. From a technical standpoint, the stock is trading below its 50-day moving average at 291.16 euros, indicating short-term bearish pressure. However, it remains well above its 200-day moving average at 248.79 euros, a level that has acted as a floor in recent months and provides medium-term support. The next resistance threshold identified is at 317.40 euros, close to the previous target set by analysts before today's revisions.
