Kering Shares Climb 2% Aiming for a Major Technical Milestone at €276
In mid-morning trading, the stock of Gucci's owner is accelerating in a slightly upward-trending CAC 40. The stock continues its recovery that began in May and is among the highest risers in the Paris index. A new broker note was released yesterday.
A Recovery Bringing the Stock Close to its 200-Day Moving Average
Kering shares are up 2.09% at €270.90, among the strongest gains in the CAC 40 by mid-morning. The stock extends the momentum started last month, with a gain of 12.4% over one month. This progress places the value above its short-term moving averages (€258.73 for the MM20 and €248.55 for the MM50), while it approaches the MM200 at €276.22, now less than 2% above the current price. This level has capped the stock for several months and constitutes the next technical hurdle, following the resistance at €276.55. The RSI at 56 remains neutral, which leaves room before reaching an overbought zone. The movement is part of a resurgence in the Paris luxury sector after a turbulent spring, while the sectoral situation in China remains mixed: jewelry and gold sales fell by 8.9% year-on-year in May according to Chinese data, while Swiss watch exports to mainland China increased by 17.1%.
TD Cowen Lowers Price Target to €290 While Maintaining Hold Rating
The analysis firm TD Cowen lowered its price target on Kering from €300 to €290 yesterday, while maintaining its 'hold' rating. The new target implies a potential upside of about 7% from the current price. This revision adds to the analysts' opinions tracking the stock, as the valuation remains stretched: based on the consensus of the analysts surveyed, the stock is trading at about 41.7 times the earnings for the current fiscal year and 27.6 times those for the next fiscal year. Over a longer horizon, the stock has recovered 50.71% over one year and 9.7% over three months, after a long period of underperformance linked to challenges at Gucci. The next technical step revolves around the MM200 and the resistance at €276.55, whose breach would confirm the exit from the bearish channel that has capped the value for several quarters.
