Kering and investment fund Mayhoola have agreed to inject 100 million euros ($117 million) into Valentino to shore up the Italian fashion house's finances after it breached loan covenants earlier this year, according to a corporate document and two sources familiar with the matter.
Die britische Investmentbank Barclays hat das Kursziel für Kering FR0000121485 von 200 auf 245 Euro angehoben, aber die Einstufung auf "Underweight" belassen.
Kering share price has gone parabolic in the past few months, making it one of the best-performing companies in the CAC 40 Index. It has jumped from a low of €147.20 in August to a high of €353 last week, which is a 140% jump.
Kering faces ongoing challenges in luxury, with Gucci and Saint Laurent under pressure. The company's sale of its beauty business to L'Oréal strengthens its balance sheet and reduces leverage, addressing key investor concerns. Q3 sales beat across brands despite limited disclosure.
Kering shares surged after Q3 results, but fundamentals remain weak with sales down for the ninth consecutive quarter. Despite operational improvements and new leadership, PPRUF continues to underperform peers and faces a long road to recovery. Valuation is extremely stretched, trading at 58x this year's earnings, with current optimism not justified by fundamentals.
Shares in Gucci-owner Kering surged on Thursday after the French luxury group reported better-than-expected sales at its flagship brand, lifting optimism that a long-awaited turnaround may be taking hold. The Paris-listed stock jumped as much as 9.2% to 346.75 euros in early trading before paring gains slightly to trade up 8.3% at 11:02 a.m.
Sales at the fashion house beat expectations in the most recent quarter, lifting revenue at the parent group and burnishing hopes of a sustained turnaround.
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