KERING has seen his price fall and fall since COVID crisis.
This idea has two majors factors, one are fundamentals and the other is a technical analysis to buy in the correct price.
FUNDAMENTALS
Attractive Valuation
Kering currently trades at approximately 1/3 of the forward price‑to‑earnings multiple of its peer Hermès. Whereas Hermès commands a forward P/E of roughly 54×, Kering’s multiple stands near 15× or below. Translated, investors may acquire an analogous portfolio of high‑end brands (Gucci, Saint Laurent, Bottega Veneta) at a substantial discount.
New Executive Leadership
In September, Kering will welcome Luca de Meo, renowned for his successful turnaround at Renault, as Chief Executive Officer. Following the announcement, the share price appreciated nearly 12 %, reflecting market confidence in his ability to streamline operations, refine brand positioning and spearhead impactful marketing initiatives.
Diversified Cash‑Flow Streams
Beyond its core fashion, Kering benefits from growing eyewear and beauty segments, each contributing incremental cash flow. Furthermore, the group has divested non‑strategic real estate assets to deleverage the balance sheet.
The principal near‑term headwinds for Kering are flagship brand and market dynamics.
Gucci’s 24 % revenue contraction in Q4 2024 highlights ongoing sales challenges in the absence of a demonstrable creative turnaround.
Volatility in China threatens both local and tourist luxury spending.
Finally, macroeconomic factors like a stronger euro versus the dollar could further pressure reported profits and consumer demand.
TECHNICAL ANALYSIS
After a big rally, the stock snapped through two critical trendlines, a horizontal support and an uptrend, within the same week, setting the stage for a swift pullback. It’s now settled back at its previous peak, which has flipped into a solid support zone and marks a full 100 % retracement of the prior pattern, an area where buyers often step in.
If you’re thinking of jumping in now, you might dip your toes first: buy a partial position today and keep some powder dry in case the price slides further into the green “buy zone” below €150.
With the potential to roughly double your money and relatively limited downside (given the strength of this support), this setup looks like a compelling entry point.
This idea has two majors factors, one are fundamentals and the other is a technical analysis to buy in the correct price.
FUNDAMENTALS
Attractive Valuation
Kering currently trades at approximately 1/3 of the forward price‑to‑earnings multiple of its peer Hermès. Whereas Hermès commands a forward P/E of roughly 54×, Kering’s multiple stands near 15× or below. Translated, investors may acquire an analogous portfolio of high‑end brands (Gucci, Saint Laurent, Bottega Veneta) at a substantial discount.
New Executive Leadership
In September, Kering will welcome Luca de Meo, renowned for his successful turnaround at Renault, as Chief Executive Officer. Following the announcement, the share price appreciated nearly 12 %, reflecting market confidence in his ability to streamline operations, refine brand positioning and spearhead impactful marketing initiatives.
Diversified Cash‑Flow Streams
Beyond its core fashion, Kering benefits from growing eyewear and beauty segments, each contributing incremental cash flow. Furthermore, the group has divested non‑strategic real estate assets to deleverage the balance sheet.
The principal near‑term headwinds for Kering are flagship brand and market dynamics.
Gucci’s 24 % revenue contraction in Q4 2024 highlights ongoing sales challenges in the absence of a demonstrable creative turnaround.
Volatility in China threatens both local and tourist luxury spending.
Finally, macroeconomic factors like a stronger euro versus the dollar could further pressure reported profits and consumer demand.
TECHNICAL ANALYSIS
After a big rally, the stock snapped through two critical trendlines, a horizontal support and an uptrend, within the same week, setting the stage for a swift pullback. It’s now settled back at its previous peak, which has flipped into a solid support zone and marks a full 100 % retracement of the prior pattern, an area where buyers often step in.
If you’re thinking of jumping in now, you might dip your toes first: buy a partial position today and keep some powder dry in case the price slides further into the green “buy zone” below €150.
With the potential to roughly double your money and relatively limited downside (given the strength of this support), this setup looks like a compelling entry point.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.