GS doubtful China stimulus will boost spending near term, cuts Kering
** Goldman Sachs says it is unlikely that China stimulus measures will positively impact high-end spending near-term and cuts its rating on Gucci owner Kering PRTP.PA
** Kering's shares, which rose 17% until Friday's close since the stimulus was announced, are down around 2.4%
** "We expect a difficult six months ahead for the luxury peers and we see a focus on costs being a key message from companies during Q324," GS says
** It cuts Kering to "sell" from "neutral" after recent share price rise, as it now sees 9% downside to its PT of 235 euros
** China remains the key debate, GS notes, adding it views luxury as late cycle with the recovery in sales growth likely to lag any improvement across the broader consumer and retail segments
** Its preferred picks across luxury remain large caps LVMH LVMH.PA, Richemont CFR.S
** It adds that companies with relatively thin margins such as Ferragamo SFER.MI, Burberry BRBY.L, Swatch UHR.S and/or in a turnaround phase such as Kering, are most negatively exposed to operating de-leverage
** Burberry and LVMH are both down around 1%, Hermes HRMS.PA slips 1.3%
Reporting by Olivier Cherfan
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