Stifel announced on Wednesday that it had lowered its recommendation on Kering shares from 'buy' to 'hold', with a price target reduced from 530 to 430 euros.

In a research note, the consultancy believes that it will be difficult for the French group to turn around its Gucci brand at a time of deteriorating conditions in the luxury goods sector.

For Stifel, the deterioration in demand since September not only complicates the task of turning the brand around, but also that of enhancing its image.

The analyst acknowledges that this task is already well underway for the YSL, Bottega Veneta and Balenciaga brands, which should increase their value, but points out that this strategy could also impact sales volumes in 2024.

'The stock appears cheap,' he concludes, 'but in the absence of catalysts for an upturn, investors will have to be patient if the state of demand persists as it is in 2024'.

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