On Wednesday, RBC Capital made adjustments to its outlook on Dry (EPA:) SA (KER:FP) (OTC: PPRUY), a luxury goods company known for brands like Gucci. The firm reduced the stock price target from EUR440.00 to EUR430.00 but maintained an Outperform rating on the stock.
The revision followed the first quarter of 2024 results, which aligned with expectations. A notable point was the decrease in Gucci’s margin guidance, leading to an anticipated drop in consensus earnings for the fiscal year 2024 by approximately 15%.
Moreover, the analyst highlighted the phasing of new product introductions from Gucci, particularly in Leather Goods, expected to begin in the third quarter of 2024, as a positive development.
Despite these new product launches, Kering’s performance faces challenges, with no signs of improvement in the current second quarter trading. Still, the expectation is that the market will shift its attention to potential revenue growth, which could be spurred by the upcoming new product releases.
As a result of the revised margin guidance, RBC Capital has also lowered its forecast for Kering’s fiscal year 2024 EBIT by 15%. The new stock price target reflects these adjustments and the current market conditions affecting the luxury goods company.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
