PARIS — Kering shares soared on Wednesday after the French luxury group’s second-quarter results indicated its turnaround plan is gaining traction.
The better-than-expected performance of its star brand Gucci cheered investors, prompting a flurry of upgrades from analysts.
Kering shares rose 16.9 percent to close at 292.85 euros, leading a mixed performance by luxury stocks. By comparison, Hermès International ended the session down 11 percent as markets predicted a normalization in its growth rates following second-quarter results in line with analyst forecasts.
HSBC upgraded Kering to “buy” and raised its target price to 340 euros from 290 euros.
Anne-Laure Bismuth, head of consumer luxury and sporting goods research at HSBC, said it doesn’t expect Gucci to return to growth this year, but the arrival in stores in mid-July of creative director Demna’s first full collection should sustain momentum at the brand, which is seeing early uptake among U.S. consumers in particular.
