JPM sees luxury stabilisation in 2026; ups Moncler and Ferragamo, cuts Burberry

Burberry

28/11/2025 08:11

** J.P.Morgan sees 2026 as "a year of stabilisation" for the luxury sector, forecasting a return to growth at 3-4% on the back of improved consumer confidence in China, steadier margins and new product launches

** However, it remains cautious on the overall sector, as economic uncertainty persists and consumers grow more discerning, and opts for selective stock pickings

** "We continue to see jewellery and high-end ready-to-wear as structurally outperforming categories in 2026, while leather goods should remain more mixed," JPM adds in the note

** It highlights Cartier-owner Richemont CFR.S as its top pick, poised to capitalise on favourable branding and on consumers willingness to pay more for high-value products

** The broker also ups its ratings for Italian firms Moncler MONC.MI and Ferragamo SFER.MI on improved brand momentum for both, saying that Ferragamo's recent turnaround strategy starts to bear fruits despite short-term execution risks

** Ferragamo is up around 4% at 0807 GMT, Moncler moves some 1% higher

** "Consensus might be too optimistic on the improvements expected at Burberry for next year and beyond," JPM adds, cutting the stock to "underweight', as early Q4 data suggest that brand momentum is still volatile and execution risks linger

** Burberry shares slide around 4%

COMPANY
RATING
OLD RATING
PT
OLD PT
Richemont CFR.S
Overweight
no change
CHF 200
CHF 190
EssilorLuxottica ESLX.PA
Overweight
no change
EUR 345
EUR 300
Cucinelli BCU.MI
Overweight
no change
EUR 130
EUR 125
Zegna JN0.F
Overweight
no change
$12.0
$11.5
Moncler MONC.MI
Overweight
Neutral
EUR 70
EUR 58
LVMH LVMH.PA
Neutral
no change
EUR 610
EUR 545
Ferragamo SFER.MI
Neutral
Underweight
EUR 7.5
EUR 4.6
Kering PRTP.PA
Underweight
no change
EUR 235
EUR 200
Swatch UHR.S
Underweight
no change
CHF 125
CHF 110
Burberry BRBY.L
Underweight
Neutral
950p
850p

(Enrico Sciacovelli)

((enrico.sciacovelli@thomsonreuters.com))