PARIS (Reuters) – The two major luxury values in Europe, LVMH and Kering, go up on Tuesday on the stock market after a change of recommendation from Morgan Stanley to take into account a “creative tenders” noted in the sector.
The American investment bank has gone from “online weighting” to “overlap” on LVMH and Kering, which allows these two titles to win 1.46% and 2.27% respectively and to classify in the top 5 of the CAC 40 index around 08:05 GMT.
In comparison, at the same time the CAC 40 folds up by 0.44% and the wide stoxx 600 index declines by 0.19%.
Morgan Stanley, on the other hand, lowered his recommendation on Hermès to “online weighting”, which makes the title back down 0.70%.
According to Morgan Stanley, a new momentum of creativity, as well as a fashion pendant movement towards maximalism, can create a situation where “the offer could create its own demand”.
Kering is now at the top of the luxury intermediary list, believing that “history is changing” under the direction of its new managing director Luca de Meo whose promising creative beginnings he welcomed the Gucci and Bottega Veneta brands.
For LVMH, Morgan Stanley underlines the positive evolution within the new creative direction in Dior where, according to him, the feeling seems to have changed “overnight”, as well as in Celine and Fendi.
On the other hand, he notes that Hermès’ growth is normalized from a two -digit percentage to a percentage with a high figure, while the flagship brand of Prada, Miu Miu, faces risks linked to increasing competition.
(Written by Claude Chendjou, with Mateusz Rabiega, edited by Blandine Hénault)
Copyright © 2025 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
