PPRUF - Still A Good 15%+ Upside From Kering

2024-07-10 06:38:23 ET

Summary

• Kering remains a solid investment with significant upside potential, despite recent declines in share price.
• Company's focus on luxury brands like Gucci, Balenciaga, and Yves Saint Laurent contributes to its value.
• Analysts predict a target price range of €300 to €575 per share, with potential for significant growth in the future.

Dear subscribers,

In this article, I mean to update my thesis on Kering, a French luxury giant. I've been an investor in French luxury for years. This has included purchases of LVMH ( LVMUY ), Pernod ( PRNDY ), Remy Cointreau, and others. Some of these companies, like LVMH, have been a part of my conservative investment portfolio for years. Others, like Pernod, are relatively new, taken in only because the valuation has finally become compelling, and I now believe the company to offer significant value for what is being priced here.

But this article is an update on Kering after about 3 months since I staked out my first position. I remain convinced that the best investment approach that you can have. A few weeks ago, when the company "cratered", during mid-June or thereabouts and was close to below €300/share, I bought more. Unfortunately, this undervaluation did not last - and now we're back to €330/share. However, this is still what I would consider cheap for the long term for Kering....

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