UBS has given Kering shares a Neutral rating after the luxury group's disappointing third-quarter results. The price target for the shares is set at 227 euros.

The broker noted that investors were expecting a setback from Kering, especially for its flagship brand, Gucci, following LVMH's underwhelming earnings. The report highlighted a significant 25% decline in retail sales, despite the presence of new collections in stores. Furthermore, Kering's Ebit outlook has been revised downwards by over 10% compared to consensus estimates, surpassing even the most pessimistic expectations. This poor performance is likely to put further downward pressure on Kering's stock in the current market environment.