(News Bulletin 247) – AlphaValue on Wednesday renewed its ‘accumulate’ recommendation and its price target of 587 euros on Kering, questioning whether perfumes could be the luxury group’s next growth engine.
The comments come as Kering Beauty reached an agreement last week to acquire 100% of Creed from BlackRock, a transaction financed entirely in cash.
In a note, AlphaValue recalls that Creed is one of the most popular niche and prestige perfume brands in the world, with annual sales of 250 million euros for an operating margin deemed ‘attractive’.
From the design office’s point of view, this acquisition confirms Kering’s ambitions in the growing segment of luxury beauty products, a step which he believes is a step in the right direction after the appointment, at the beginning of the year, of a former Estée Lauder executive, Raffaella Cornaggia, to the post of CEO of Kering Beauté.
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