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Investing.com - TD Cowen raised its price target on Ermenegildo Zegna Group (NYSE:ZGN) to $10.00 from $8.80 while maintaining a Hold rating on the luxury fashion company. The stock, currently trading at $9.02 with a market capitalization of $2.29 billion, has delivered a solid 10.91% return year-to-date.
The firm cited strong performance in the core Zegna brand, which represents 60% of the company’s business mix, noting organic sales growth of 2.6% and direct-to-consumer sales increasing by 5.6% in the first half of 2025. According to InvestingPro analysis, the company maintains impressive gross profit margins of 67.14% and appears slightly undervalued based on its Fair Value assessment.
Zegna brand margins reached 14.3%, with the segment’s EBIT margin improving by 150 basis points due to operational leverage, according to TD Cowen’s analysis of the 1H25 results.
Despite the positive developments, including new leadership at Thom Browne and creative changes at Tom Ford, TD Cowen maintained its Hold rating citing concerns about Greater China’s growth trajectory, where organic sales declined 14.7% year-over-year in the first half of 2025.
The firm also highlighted uncertainty regarding the turnaround timeline for the Thom Browne brand, which represents 15% of Zegna’s business and is undergoing wholesale channel restructuring expected to be completed by 2026.
In other recent news, Ermenegildo Zegna NV reported its second-quarter 2025 earnings, exceeding analyst expectations. The company achieved an earnings per share (EPS) of 0.17, surpassing the forecasted 0.14, resulting in a 21.43% surprise. Additionally, Zegna’s revenue reached approximately €928 million. These earnings results highlight the company’s strong performance during the quarter. Following the announcement, analysts and investors have taken note of the company’s financial health. While the stock price movement is not the focus here, the earnings results have generated positive sentiment. These developments reflect the latest updates concerning Ermenegildo Zegna NV .
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