Kering jumps after BofA double upgrade on improving brand heat at Gucci
** Shares in Kering PRTP.PA jump around 6% to two-month highs after BofA Global Research double upgrades the luxury group to "buy" from "underperform", citing early sings of brand heat improvement at its crown jewel Gucci
** BofA notes that Gucci is trying to re-engage with "trend setters" through new product, fashion shows and activation events, and while near-term impact on revenues is unlikely, the "green shoots" may already be evident in H2 2024
** "The BofA Brand Leading Indicator correctly predicted slowing brand heat at Gucci in 2020, and our indicator has now turned up, suggesting the bottom at Gucci is behind us" - BofA
** It adds the growing availability of Sabato De Sarno's new Gucci product should help to convert the early improvement in brand heat to revenues
** The broker estimates Sabato product to be 40% of revenue in Q4, up from only 7% in Q1
** "Whilst we are still 5% below consensus 2024 EBIT, sentiment is at 10yr lows, and we think less bad news = good news," it says, raising its PT by 29% to 450 euros
Reporting by Nathan Vifflin, Anna Pruchnicka
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