Kering: Better Times Could Be Ahead, But Valuations Are Stretched

Manika PremsinghInvesting GroupFollow5ShareSavePlay(8min)CommentsSummaryKering shows early signs that revenue could stabilize in 2026, as Q4 2025 in particular showed some signs of revival.The company's profitability has weakened in the past year, though, with a sharp drop in the net margin.While a sharp pickup in earnings is possible this year, PPRUY still trades at exceptionally stretched forward valuations.I maintain a Hold rating as optimism outpaces fundamentals and luxury market recovery remains uncertain.Looking for a portfolio of ideas like this one? Members of Green Growth Giants get exclusive access to our subscriber-only portfolios. Learn More » resulmuslu/iStock Editorial via Getty Images When I last checked on Gucci owner Kering (PPRUY)(PPRUF) in January 2025, the stock's prospects were muted at best. However, since then, it's up by 43%, even with a 4.6% YTD drop in price. The stock isThis article was written byManika Premsingh4.46K FollowersFollowManika is a macroeconomist with over 20 years of experience in industries including investment management, stock broking, investment banking. She also runs the profile Long Term Tips [LTT], which focuses on the generational opportunity in the green economy. Her investing group, Green Growth Giants, takes the theme a step further from LTT with a deeper dive into opportunities presented by the segment.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.