MS cuts Kering to 'equal weight' as turnaround is priced in

Kering SA

13/04/2026 07:40

** Morgan Stanley downgrades French luxury goods group Kering PRTP.PA to "equal weight" from "overweight", stating its turnaround is already largely priced in

** The broker lowers its PT by 3% to EUR 320, citing slightly more conservative revenue and margin assumptions over the 2026-2028 cycle after a softer start to the year

** The brokerage sees limited upside for the shares for now, stating that with most of the "low hanging fruit already picked", Kering's relative outperformance is likely to pause

** While MS views recent creative changes at the Gucci brand positively, it cautions that early signs of improving "brand buzz" is coming ahead of "hard numbers"

** The broker adds it does not expect meaningful financial targets during Kering's upcoming Capital Market Day next week, anticipating a focus on long-term strategy instead

** Out of 27 analysts that cover Kering, five rate the stock "strong buy" or "buy," 16 rate it "hold", and six rate the stock "strong sell" or "sell" - LSEG data

 (Reporting by Mateusz Rabiega)

 ((Mateusz.rabiega@thomsonreuters.com))