Kering shares soared 15 percent to an intra-day high of 289 euros after the French luxury group's second-quarter results indicated its turnaround plan is gaining traction. The better-than-expected performance of star brand Gucci, which posted a 2 percent organic sales drop, prompted analyst upgrades from HSBC, Bernstein, RBC, and others. HSBC upgraded Kering to buy and raised its target price to 340 euros, while Bernstein lifted its target to 270 euros, citing Gucci's revised pricing strategy and new creative direction under Demna. CEO Luca de Meo noted that Gucci has repositioned some products after prices went too far in certain categories, and leather goods returned to growth in the quarter. By contrast, Hermès International fell more than 12 percent as markets anticipated a normalization in its growth rates.
Kering SAQ2 results beat expectations, Gucci turnaround gains traction, analyst upgrades and target price increases
Hermes International SCAmarkets anticipate normalization in growth rates, causing stock to fall 12%
HSBC Holdings PLC