UBS Upgrades Ermenegildo Zegna Group (ZGN) to Buy

UBS analyst Chris Huang upgraded Ermenegildo Zegna Group (NYSE: ZGN) from Neutral to Buy with a price target of $11.50 (from $11.00).

The analyst comments: "We have been fundamentally constructive on ZGN's growth prospects, underpinned by the consistently strong +DD% momentum of western consumers for the core Zegna brand (~60% of group sales), alongside tailored clienteling strategy and smart merchandising initiatives that continue to resonate with high-end consumers across generations. Combined with an underlying inflection of Chinese consumers in Q4 (+4ppt sequential acceleration on a 2-year stack), we see a clearer path toward a strengthening topline. On margins, and specifically risks around the 2027 target, recent investor conversations indicate expectations have been more reset. All in all, the stock's ytd ~10% de-rating and a >20% EPS CAGR in our view catalyse a more positive stance on ZGN - upgrade to Buy."

For an analyst ratings summary and ratings history on Ermenegildo Zegna Group click here. For more ratings news on Ermenegildo Zegna Group click here.

Shares of Ermenegildo Zegna Group closed at $9.71 yesterday.

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