HSBC Downgrades Kering to Hold, Target €280

HSBC downgraded Kering to Hold from Buy, reducing target price to €280 from €310.
Analysts project Gucci’s organic sales to fall 3.6% in 2026, then grow 4% in 2027 and 5% in 2028.
HSBC cut EBIT estimates by average 7% for 2026‑28, citing slower Gucci recovery which contributes ~59% of group EBIT.
Kering trades at 26.8x 2027 PE, above HSBC’s luxury average 22.8x, indicating valuation concerns and lack of short‑term catalysts.