Kering (1K) | Buy | Recovery delayed, not derailed

Research evidence excerpt

Kering (1K) | Buy | Recovery delayed, not derailed

#TPchange #HighConviction

Release date: 11 June 2026

Company research

ESG profile BuyKering

European Large CapsFrance | Luxury goods Beta Profile: MCap: EUR31.6bn Selected List

Target Price: EUR360.00 (400.00) Change in TP: -10.0 % Bloomberg: KER FP Reuters: PRTP.PA

Current Price: EUR256.00 Change in Sales: -1.6% 26E/-1.3% 27E Free float 57%

Up/downside: 40.6% Change in Adj EBIT: -8.0% 26E/-8.3% 27E Avg. daily volume (EURm) 132.6

YTD abs performance -15.0% Market data: 10 June 2026 Change in Adj. EPS: -11.2% 26E/-9.2% 27E

52-week high/low (EUR) 344.95/172.58

Recovery delayed, not derailed Price

performance

Why this report?

We reiterate our Buy rating and continue to view Kering as a compelling and

largely underappreciated turnaround story. While the conflict in the Middle

East is delaying the recovery into H2, management's initiatives are gaining

traction. Gucci remains challenged near term (-6% LFL in Q2E) but is showing

encouraging signs, entering the Top 10 of our Luxury Brand Heat Barometer.

We view the CMD targets as achievable despite slower sector growth. We cut

our 2026-28E sales forecasts by 1% and EBIT/EPS by 8%/9%, but remain

above consensus. With investors still cautious and consensus assumptions

conservative, we see scope for upgrades. Buy with TP lowered to EUR360.

Key findings

After the publication of our Q&A report earlier this year, we revisit our investment

case on Kering following Q1 results and the group's CMD, reiterating our view that FY to 31/12 (EUR) 12/26E 12/27E 12/28E

Kering remains a compelling and largely underappreciated turnaround story. Sales 14,861 15,727 16,731

EBITDA adj. 3,875 4,363 4,988 While the conflict in the Middle East is delaying the expected recovery into H2, EBIT adj.