June 5: BofA Upgrades LVMH and Zegna to Buy; Kering Up 49% Over Three Months
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End-of-week edition with analyst upgrades, Pace Gallery restructuring, and the week in review.
Tickers covered: MC.PA | ZGN | CFR.SW | UHR.SW | WOSG.L | BRBY.L

In this episode:

Analyst Upgrades
- BofA upgrades LVMH (MC.PA) to Buy
- BofA upgrades Zegna (ZGN) to Buy, price objective $8.90 (17% upside)
- BofA describes Zegna as "one of the more undervalued stories in luxury"
- Kering up ~49% over three months on recent upgrades
- LVMH up ~42% over three months, still below 52-week high of EUR 654.70

Zegna — Los Angeles
- Summer 2027 runway show staged in LA today
- Villa Zegna invitation-only private club opened in Hollywood

Pace Gallery — Market Signal
- Cutting ~50 artists from roster of 135, staff from 250 to 200
- CEO Marc Glimcher: mega-gallery model is "unfixable"
- Reflects pressure on primary art market and consignment pipelines

Week in Review
- Spring auction season: $1.8B across Christie's, Sotheby's, Phillips in May
- LVMH (MC.PA): EUR 477, upgraded to Buy by BofA
- Richemont (CFR.SW): near record high CHF 161.80
- Watches of Switzerland (WOSG.L): up 14% on FY2026 earnings
- Swatch (UHR.SW): CHF 215
- Burberry (BRBY.L): delayed net zero target from 2040 to 2050
- De Beers: average diamond cost $4,063, up 25% from 2023
- Swiss watch exports to US: down 17% YoY in April
- Hong Kong luxury sales: up 20% YoY in April
- Neiman Marcus closing Dallas flagship (Saks Global Ch.11)
- Pace Gallery restructuring

Auctions Ahead
- Sotheby's Magnificent Jewels — June 9, New York
- Christie's watches — June 10, New York
- Bonhams watches — June 11, London
- Phillips watches — June 13-14, New York
- Sotheby's watches — June 15, New York
- Bonhams National Automobile Museum — June 13, Reno
- RM Sotheby's Tegernsee — July 4

Links:
- ALT/FNDATA: https://www.altfndata.com
- BofA LVMH and Zegna upgrades: https://www.investing.com/news/stock-market-news/lvmh-shares-soar-as-bofa-upgrades-shares-to-buy-sees-15-upside-potential-3816526
- Pace Gallery restructuring: https://news.artnet.com/market/pace-gallery-downsizes-cutting-artists-and-staff-2778584
- Zegna LA runway: https://wwd.com/menswear-news/mens-designer-luxury/zegna-spring-2027-los-angeles-thom-browne-first-show-milan-fashion-week-1238638812/

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