HSBC cuts Kering as brand recovery will take time

Kering SA

21/04/2026 07:16

** HSBC downgrades  Kering PRTP.PA to "hold" from "buy" as its gradual sales turnaround plan requires time while a challenging macro environment "won’t make it easy in the short term"

** HSBC says that while the luxury conglomerate's flagship brand Gucci performs solidly in the US, rebuilding its damaged brand desirability in China will require significant time

** Kering's 2026 target to grow all brands looks ambitious, HSBC adds

** Kering trades at 26.8x PE27e multiple "which does not look particularly attractive to us," says the broker, adding management needs to deliver real results for investors to build trust

** Of 27 analysts covering Kering, four rate it "strong buy"/"buy,"​ 18 "hold" and five "strong sell"/"sell" - LSEG data

(Reporting by Dimitri Rhodes in Gdansk)

((dimitri.rhodes@thomsonreuters.com))