Zegna Q4 Revenue Gains 4.6% and UBS, Morgan Stanley Raise Targets
Ermenegildo Zegna’s Q4 revenue rose 4.6% to €591 million, driving full-year sales up 1% to €1.917 billion. Morgan Stanley upgraded its rating to Equalweight with an $11 target and UBS raised its price goal to $11.50, highlighting affluent consumer momentum in the core Zegna brand.
1. Analyst Upgrades and Price Targets
Morgan Stanley upgraded the stock rating to Equalweight with an $11 target after noting better-than-expected Q4 2025 sales results. UBS followed by elevating its rating to Buy and boosting its price target to $11.50 from $11.
2. Brand Momentum and Strategy
UBS analysts pointed to strong momentum in the core Zegna brand, driven primarily by affluent Western consumers. This brand now accounts for about 60% of total company sales, underpinning profitability and growth prospects.
3. Financial Performance in Q4 and Full Year
Ermenegildo Zegna’s Q4 revenue increased 4.6% to €591 million while full-year revenue climbed 1% to €1.917 billion. These results were bolstered by stronger retail sales and improved consumer engagement across product lines.
4. Strategic Optimizations and Risks
Analysts are cautiously optimistic about ongoing store portfolio optimization efforts but remain concerned about wholesale rationalization, particularly for the Tom Ford and Thom Browne labels, which could affect margin stability.