Kering (NR, A- Stable) {KER FP Equity} 1Q24 results after close

* Hard to get excited about the curve - 30's at Z+50, spread 12bps wide of Richemont (CFRVX; NR, A+) now vs. the +22bp spread after late March guidance warning - which is when we flagged the curve was firmly priced for downgrade with little downside for spreads

*Given its in-line with equal rated Booking.com (generally comes with reverse yankee discount) & Reckitt 30's (tail risk is for lawsuit blowout) there might be (marginal) room for firming in positive readthrough from earnings call - any comments on asset disposals and/or changes in (high) dividend pay-out we are eyeing alongside headline colour. As we noted, S&P seemed more focused with cash use on property purchases than near-term earnings.

Not a name we have much interest in within broader rating space - equal rated Edenred gives +30bps on 31s.

S&P downgrade from mid-April; https://marketnews.com/kering-nr-a-stable-ker-fp-e...
Guidance warning from late-March; https://marketnews.com/an-update-on-kering-sell-off