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Kering (ENXTPA:KER) Valuation Check After Recent Share Price Strength

Simply Wall St · 3d ago

Why Kering (ENXTPA:KER) is on investors’ radar today

Kering (ENXTPA:KER) is drawing fresh attention after recent share price moves, with the stock last closing at €315.55. This is prompting investors to reassess its earnings profile, returns and current valuation signals.

See our latest analysis for Kering.

The recent 1-day share price return of 3.46% and 7-day share price return of 5.01% have put Kering back in focus, while the 1-year total shareholder return of 40.35% contrasts with weak 3 and 5 year total shareholder returns, suggesting momentum has picked up only recently.

If you are reassessing luxury exposure after Kering’s recent move, it may also be a good time to broaden your watchlist with fast growing stocks with high insider ownership.

With Kering’s shares up 40.35% over the past year but long-term returns still in decline, the key question now is simple: are you looking at a genuine value opportunity, or is the market already pricing in future growth?

Most Popular Narrative: 6.4% Overvalued

With Kering last closing at €315.55 versus a narrative fair value of about €296.45, readers are weighing whether current pricing already reflects the story being told.

The analysts have a consensus price target of €200.652 for Kering based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of €360.0, and the most bearish reporting a price target of just €135.0.

Read the complete narrative.

Curious what kind of revenue rebuild, margin lift and future earnings multiple are baked into that fair value, and how they line up with those split targets? The narrative leans on specific growth rates, profitability assumptions and a premium P/E that is higher than today’s sector benchmark. If you want to see exactly which earnings path has been mapped out for Kering, the full story lays out the numbers behind that €296 fair value line by line.

Result: Fair Value of €296.45 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this story could change quickly if brand fatigue deepens across key labels or if ongoing store closures weigh more heavily on sales and margins.

Find out about the key risks to this Kering narrative.

Build Your Own Kering Narrative

If you do not fully buy into this story or simply prefer to work through the numbers yourself, you can build a custom narrative in just a few minutes. To begin, start with Do it your way.

A great starting point for your Kering research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.

Ready for more investment ideas beyond Kering?

If Kering is on your radar, do not stop there. Use the Simply Wall St Screener to spot other opportunities that could round out your portfolio.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.