Kering shares gain 2%, leading the CAC 40 pack
The luxury group's stock is in the green on Friday, benefiting from a favorable day for the Paris market. BofA Securities revised its price target the day before, in a context where the luxury sector remains under scrutiny due to mixed signals from China.
A rebound that fails to erase the lag against moving averages
Kering gains 2.04% during the session, at €255.65, ranking among the strongest gainers in the CAC 40 while the index advances by nearly 1%. The rebound remains however insufficient to close the gap with moving averages: the stock trades 4.88% below the 20-day MA at €268.77 and 4.67% below the 200-day MA at €268.17. Even the 50-day MA at €260.86 remains above the current price, with a gap of 2%.
The RSI at 41 signals a configuration slightly oriented towards selling, without reaching the oversold zone, which reflects still fragile bullish dynamics over the week. Over seven days, the gain remains modest at 2.02%, reflecting a stock regaining momentum without yet confirming a trend reversal. Support at €238.80 remains far below, while resistance at €292.85 represents a horizon approximately 15% away from the current price.
BofA lowers its target, half-year results reveal Gucci house under pressure
BofA Securities maintained its analyst opinion at "hold" on Kering while lowering its price target from €315 to €300 on August 27. At €255.65, the stock trades with an upside potential of approximately 17% relative to this revised target. Based on expected earnings, the stock trades at approximately 39.9 times current fiscal year results and 25.6 times the following fiscal year, according to the consensus of analyzed analysts, reflecting a still demanding valuation in light of the results published on July 28. During the publication of the first half of 2026, the group's net profit had declined by 60% to €189 million, penalized by non-recurring charges of €223 million and a 5% comparable decline in Gucci's revenue, the group's flagship brand.
In return, half-year results highlighted the reduction of net debt by €4.7 billion through the sale of Kering Beauty, and the 20% comparable growth of Kering Jewelry. The group aims to return to growth over the full year 2026, based on approximately 100 net store closures. Swiss watch exports to China declined 16.5% year-on-year in July, a sign that demand for high-end luxury in the region remains under pressure, a context the group will need to navigate in the second half of the fiscal year.
