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This summary was created by AI, based on 2 opinions in the last 12 months.

The luxury market, particularly for Kering's flagship brand Gucci, has faced challenges following a post-Covid resurgence, primarily driven by shifting consumer preferences in China. Analysts note that the brand's recent identity shift towards leather goods and classic fashion fails to resonate with its core audience, leading to a decline in performance. Despite these hurdles, the appointment of a new designer is seen as a potential turning point that could revitalize the brand's appeal. Financially, Kering benefits from a robust balance sheet and significant free cash flow, bolstered by a healthy 5.5% dividend. While the stock currently trades at a forward PE ratio of 17x, analysts see room for growth, suggesting a strong long-term position in the luxury goods sector characterized by stability and oligopolistic dynamics.

Consensus
Neutral
Valuation
Undervalued
Similar
LVMH,MC
TOP PICK

The luxury market has been weak after the post-Covid boom. Chinese consumers are a major factor. Plus, their Gucci brand wasn't resonating with consumers. Their designer tried to make the brand more into leather goods and classic fashions, but that isn't what Gucci is about. They have a new designer, so he sees upside. Long-term, he likes luxury goods for being stable and an oligopoly. It trades at 17x PE forward where mid-20s is the norm, so there's room here.

(Analysts’ price target is $22.60)
PAST TOP PICK
(A Top Pick Oct 20/23, Down 38%)

The problem is that Gucci continues to underperform; they changed designers. Has huge free cash flow, a good balance sheet and pays a 5.5% dividend. Disappointing.

PAST TOP PICK
(A Top Pick Mar 31/23, Down 38%)

Slowly Gucci sales have hurt and guidance is weak. He exited. Not sure what the future holds. Gucci has sales trouble.

TOP PICK

Excellent company with Gucci as top brand.
Luxury brand space will see further growth in Asia.
Expecting increased revenue in 2024.


PAST TOP PICK
(A Top Pick Apr 06/22, Up 1%)

China closing up caused a drop in sales but it is re-opening and the Chinese people are huge buyers of luxury goods. It has big growth ahead and lots of free cash flow. It is also very good at turning brands around.

TOP PICK
Spectacular job of turning around tired brands, such as Yves St Laurent. No net debt. Expects double-digit revenue growth. Shares are down because of China locking down, plus unrest in Europe, creating a great opportunity to step in. (Price target in Euros.) Yield is 2.15%. (Analysts’ price target is $77.61)
PAST TOP PICK
(A Top Pick Jan 30/20, Down 2%) A major brand under them is Gucci. They were surprisingly not hurt last year due to switching to online efficiently. Revenues also held up well since people spent their travel budget into luxury goods. Their strength is picking up tired brands and then rejuvenating them. Great cashflow with a bullet proof balance sheet. They will make more acquisitions of brands that are cheap and invest in them. A cheap grower.
TOP PICK
The Asian middle class is driving all of this and those numbers are still mushrooming. GUCCI is the fastest growing of all the major brands and is 60% of KER-EPA. It is trading at a much cheaper multiple than other companies with better growth going forward. He expects 35% earnings growth over the next two years.
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Kering(PPRUY-OTC) Rating

Ranking : 4 out of 5

Star iconStar iconStar iconStar iconStar empty icon

Bullish - Buy Signals / Votes : 1

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 1

Stockchase rating for Kering is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Kering(PPRUY-OTC) Frequently Asked Questions

What is Kering stock symbol?

Kering is a American stock, trading under the symbol PPRUY-OTC on the US OTC (PPRUY). It is usually referred to as OTC:PPRUY or PPRUY-OTC

Is Kering a buy or a sell?

In the last year, 1 stock analyst published opinions about PPRUY-OTC. 1 analyst recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Kering.

Is Kering a good investment or a top pick?

Kering was recommended as a Top Pick by on . Read the latest stock experts ratings for Kering.

Why is Kering stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Kering worth watching?

1 stock analyst on Stockchase covered Kering In the last year. It is a trending stock that is worth watching.

What is Kering stock price?

On 2025-04-23, Kering (PPRUY-OTC) stock closed at a price of $19.03.