Spain’s credit rating upgraded to ’A+’ by S&P on strong growth
Investing.com - HSBC upgraded Kering SA (EPA:KER) (OTC:PPRUY) from Hold to Buy and raised its price target to EUR300.00 from EUR200.00.
The upgrade reflects HSBC’s expectation that Kering’s board and chairman will empower the incoming CEO to implement swift changes that may have been difficult to execute previously.
HSBC analyst Erwan Rambourg noted these anticipated changes should reduce the risk of holding Kering shares, leading the firm to lower Kering’s specific beta to 1.15, positioning it between its previous level of 1.4 and LVMH’s 0.9.
The firm also slightly increased its longer-term margin assumptions for the luxury goods company, despite expectations that near-term cost savings would be reinvested to stimulate growth.
HSBC believes the benefits of Kering’s simplification efforts will become more apparent in later years, contributing to improved performance.
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