Jefferies Starts Ermenegildo Zegna Group (ZGN) at Buy

Jefferies analyst Bhumi Kanabar initiates coverage on Ermenegildo Zegna Group (NYSE: ZGN) with a Buy rating and a price target of $12.90.

The analyst comments: "ZGN is valued at 18x, in line with normal luxury stocks (23x) despite being closer in nature to ultra-luxury stocks (38x). This reflects multiple overhangs that will dissipate in the mid-term. We forecast above-consensus organic growth on sales density improvements driven by ultra-lux-geared Made-To-Measure & Top Of Pyramid products, supporting strong margin expansion. Tom Ford improving removes a drag. We estimate a 20% 3yr EPS CAGR (cons 15%). 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 $8.76 yesterday.

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