TD Cowen has upgraded Ermenegildo Zegna's stock from hold to buy, increasing the price target from $13 to $15, which suggests a 20% upside from its recent closing price. Analyst Oliver Chen highlighted that Zegna's fundamentals are improving, supported by its vertically integrated model and strong customer relationships.
The brand has shown resilience even amid a challenging luxury market, with shares rising 46% over the past year. Despite a projected 2.5% growth in the personal luxury goods industry by 2026, Zegna is expected to benefit from a growing divide in consumer spending patterns, particularly among affluent customers.
This positive outlook is echoed by the consensus among analysts, with 8 out of 12 recommending a buy or strong buy on the stock