JPM starts Cucinelli, Zegna at 'overweight' as pure plays in ready-to-wear sector

Brunello Cucinelli SpA

15/09/2025 08:10

** J.P.Morgan initiates coverage on luxury companies Brunello Cucinelli BCU.MI and Ermenegildo Zegna JN0.F with  "overweight" rating, singling out the two brands as pure plays in the high-end ready-to-wear (RTW) segment

** Cucinelli's stock is up around 2% at 0709 GMT

** It notes that in an otherwise volatile and challenging luxury environment players in the segment share key winning traits - a fast-growing and loyal client base of high net worth individuals, small scale and strong control of the supply chain

** "Niche, very high-end RTW brands tap well into these dynamics, with their relative small size translating into true exclusivity, and tight ties to the supply chain leading to a strong focus on materials and craftsmanship," - JPM

** It sees "an attractive entry point" for Cucinelli after the stock declined 7% YTD

** JPM sets a PT of EUR 125($146.55) for Cucinelli, while Zegna's at $11

** Out of 16 analysts that cover Cucinelli, nine rate the stock "buy" and seven rate it "hold"; Zegna's coverage includes four "buy" ratings and three "hold" ratings - LSEG data

($1 = 0.8530 euros)

 (Reporting by Enrico Sciacovelli)

 ((enrico.sciacovelli@thomsonreuters.com))