Kering Gets Sell Rating Amid Luxury Sector Concerns

10 days ago

Chloe Malay

"But then today, uh, Caring got cut to a sell rating at Baronburgg and that is driving down those shares. Baronberg cut Carring to a sell and also LVMH to a hold, saying that the luxury sector faces structural demand issues with continued pressure in China and low consumer confidence among aspirational buyers. This will be particularly tough on Caring and LVMH, while companies with less exposure to the aspirational end of the market might fare better."

The commentary highlights that Kering (referred to as "Caring" in the transcript) was downgraded to a sell rating by Baronberg due to structural demand issues, headwinds in China, and shifting consumer behavior, signaling a cautionary stance in the luxury segment.

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