Oddo BHF confirms its 'neutral' recommendation on Kering shares with an unchanged target price of €171.
Oddo BHF believes that the relative stabilization of trends at Gucci, despite a continued sharp decline in revenues, limits the need for further revisions to short-term forecasts.
The broker also highlights the group's significant efforts to reduce operating costs, which should limit the deterioration in the EBIT margin in H1.
Our 2025 EBIT estimate is lowered from €1,918m to €1,840m, with H1 at €914m vs. €959m previously. The downward revision is smaller for 2026 and 2027 at -3%. Group revenue growth for 2026 is expected to be 5.2% with an EBIT margin of 13.5% and +6.3% for 2027 with an EBIT margin of 14.7%, the analyst said.
Finally, the note specifies that the upcoming arrival of Luca De Meo at the helm strengthens visibility on strategic execution, and that the current valuation of the stock already partially reflects this outlook, which justifies maintaining the Neutral rating.
Copyright (c) 2025 CercleFinance.com. All rights reserved. The information and analyses published by Cercle Finance are provided solely as a decision-making aid for investors. Cercle Finance cannot be held liable, directly or indirectly, for the use of such information and analyses by readers. Anyone who is not an expert in the field is advised to consult a professional advisor before investing. This information is provided for informational purposes only and does not constitute an offer to sell or a solicitation to buy.
A global Luxury group, Kering manages the development of a series of renowned Houses in Fashion, Leather Goods, and Jewelry: Gucci, Saint Laurent, Bottega Veneta, Balenciaga, McQueen, Brioni, Boucheron, Pomellato, Dodo, Qeelin, Ginori 1735, as well as Kering Eyewear and Kering Beauté.
By placing creativity at the heart of its strategy, Kering enables its Houses to set new limits in terms of their creative expression while crafting tomorrow's Luxury in a sustainable and responsible way. It captures these beliefs in its signature: Empowering Imagination.
In 2025, Kering had 43,731 employees and restated revenue of EUR 14.7 billion.
At the end of 2025, the Group had a network of 1,719 stores under its own management, located primarily in Western Europe (361), Japan (225), Asia-Pacific (666) and North America (308).
Net sales are distributed geographically as follows: France (5.6%), Western Europe (24.5%), Japan (7.9%), Asia/Pacific (28.6%), North America (24.2%) and other (9.2%).
This super rating is the result of a weighted average of the rankings based on the following ratings: Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
This super composite rating is the result of a weighted average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), EPS Revisions (1 year), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Global
Global
This composite rating is the result of an average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), Financial Estimates Revisions (Composite), Consensus (Composite) and Visibility (Composite). The company must be covered by at least 4 of these 5 ratings for the calculation to be carried out. We recommend that you carefully review the associated descriptions.
Quality
Quality
This composite rating is the result of an average of rankings based on the following ratings: Returns (Composite), Profitability (Composite) and Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully read the associated descriptions.
ESG MSCI
ESG MSCI
The MSCI ESG score assesses a company’s environmental, social, and governance practices relative to its industry peers. Companies are rated from CCC (laggard) to AAA (leader). This rating helps investors incorporate sustainability risks and opportunities into their investment decisions.
