Kering Kept at Sell as Berenberg Notes Q2 Revenue Beat

09:48 AM EDT, 07/30/2026 (MT Newswires) -- Berenberg reiterated Kering's (KER.PA) sell rating while noting the luxury goods giant's revenue beat in the second quarter, owing to smaller-than-anticipated contraction in Gucci revenue. "Kering CEO Luca de Meo struck a very confident and upbeat tone on the post H126 results call (28 July), detailing rapid execution against the strategic plan set out at April's CMD. Combined with Gucci doing less badly than feared and costs being cut faster than expected, the stock squeezed 15% higher the following day," the research firm said. "While there is much low-hanging fruit to harvest through simply professionalising the management of the business, the plan's ultimate success depends on how long the structural headwinds buffeting the Chinese and aspirational consumers, to which Kering is exposed, persist," Berenberg added. Subsequently, Berenberg revised its EBIT and EPS forecasts for 2026 through 2028, with the 2026 estimates lowered to account for higher nonrecurring costs and tax rate, while those for 2027 and 2028 were raised to reflect tighter cost management. Sales projections were trimmed across the three-year period. The stock's price target was left unchanged at 175 euros.