Kering Shares Fall >3% After Downgrade

Morgan Stanley cut Kering rating to equal‑weight, lowered price target to €320 from €330, citing limited upside after strong YTD performance.
Shares slid over 3% on the downgrade, after reaching a YTD high of €320.50 on Jan 12 and a 16% drop on Monday.
Morgan Stanley projects 2028 sales €18.3bn, operating margin 18.4%, EPS €15.97, but cuts 2026 outlook, forecasting Gucci sales down 6.2% Q1.
Potential catalysts include Luca de Meo’s restructuring since Sep 2025 and evidence of a sustained Gucci recovery, while options show 28.9% chance above €320.