JPMorgan Begins Coverage of Ermenegildo Zegna with an Overweight Rating
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 15 2025
0mins
Should l Buy ZGN?
JPMorgan's Coverage Initiation: JPMorgan has started coverage of Ermenegildo Zegna with an Overweight rating and a price target of $11.
Growth Potential: The firm believes Zegna is well-positioned in the high-end ready-to-wear market, benefiting from exclusivity and direct supply access, which should lead to double-digit earnings growth over the next three years.
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Analyst Views on ZGN
Wall Street analysts forecast ZGN stock price to rise
5 Analyst Rating
3 Buy
2 Hold
0 Sell
Moderate Buy
Current: 10.980
Low
10.00
Averages
11.34
High
13.00
Current: 10.980
Low
10.00
Averages
11.34
High
13.00
About ZGN
Ermenegildo Zegna NV is an Italy-based manufacturer of high-end menswear and accessories. The Company focuses on producing different kinds of apparel, including outerwear such as jackets, suits, blazers, shirts, pants and jeans, as well as shoes, sportswear and accessories. The Company is active worldwide.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Ermenegildo Zegna 2025 Earnings Call Highlights
- Revenue Growth: Ermenegildo Zegna reported 2025 revenues of EUR 1.917 billion, reflecting a 1% increase year-over-year, with Q4 revenues reaching EUR 591 million, up 4.6%, indicating strong performance in the direct-to-consumer (DTC) channel, which accounted for 82% of brand revenues.
- Channel Strategy Shift: Management underscored a deliberate reduction in wholesale reliance, with Zegna brand wholesale revenues declining 17% in Q4, representing only 12% of brand revenue, while DTC revenues grew 10%, demonstrating a firm commitment to a retail-first strategy.
- Regional Performance Disparities: Despite a 10% decline in Greater China revenues in Q4, the EMEA and Americas markets grew by 7% and 16%, respectively, showcasing the company's resilience in global markets, particularly with double-digit growth in the U.S.
- Leadership Transition: Zegna announced a leadership transition, appointing Gianluca Tagliabue as Group CEO and Edoardo and Angelo Zegna as co-CEOs of the brand, aimed at strengthening family leadership succession and brand development.
See More
Ermenegildo Zegna Group Revenue Analysis for FY 2025
- Q4 Revenue Growth: In Q4 2025, Ermenegildo Zegna Group reported revenues of €591 million, reflecting a 0.3% year-over-year increase and a 4.6% organic growth, indicating a sustained acceleration compared to Q3, driven by the company's strategic focus on the Direct-to-Consumer (DTC) channel.
- Brand Performance Disparity: The ZEGNA brand achieved revenues of €1.181 billion for FY 2025, marking a 1.5% year-over-year increase, with Q4 revenues at €361.7 million, up 2.4%, showcasing strong growth in the DTC channel; in contrast, Thom Browne's revenues fell 14.7% due to a contraction in the wholesale channel.
- Geographic Performance: For FY 2025, Zegna's revenues in the Americas reached €566 million, up 7.9%, demonstrating robust performance particularly driven by the DTC channel, which further solidifies its market position in this region.
- New Leadership Structure: In November 2025, Zegna Group announced a new leadership structure with Gianluca Tagliabue as CEO, marking a transition to a new generation of leadership, which is expected to drive the company's strategic development in the future.
See More
Ermenegildo Zegna Downgraded by BofA, Shares Plunge 13.25%
- Rating Downgrade Impact: Bank of America analyst Daria Nasledysheva downgraded Zegna's rating from buy to hold, causing the stock to plummet 13.25% during the trading session, closing at $9.56, indicating market concerns about its future performance.
- Price Target Adjustment: Nasledysheva lowered Zegna's price target from $11.50 to $11.20, reflecting a cautious outlook on the company's transformation into a luxury leisurewear brand, suggesting diminished confidence in its growth potential.
- Brand Growth Challenges: The analyst highlighted potential growth lag for Zegna's Thom Browne and Tom Ford brands, particularly following recent C-suite changes, which may hinder margin improvement and increase future uncertainties.
- Executive Changes Context: Earlier this year, Zegna underwent several executive changes, with founder Ermenegildo Zegna stepping down as CEO and Gianluca Tagliabue taking over, and while this transition appears smooth, the market remains cautious about the new leadership team's performance.
See More
Ermenegildo Zegna Downgraded by BofA, Shares Drop 13%
- Analyst Downgrade Impact: Bank of America analyst Daria Nasledysheva downgraded Zegna's rating from Buy to Neutral, causing the company's stock to plummet over 13% during the trading session, reflecting market concerns about its brand outlook.
- Price Target Adjustment: Nasledysheva lowered Zegna's price target from $11.50 to $11.20, indicating a cautious stance on the company's future profitability, which may affect investor confidence.
- Brand Growth Concerns: The analyst expressed worries about Zegna's Thom Browne and Tom Ford brands potentially becoming growth laggards, further intensifying market skepticism regarding the company's strategic transformation.
- Executive Changes Impact: Zegna underwent executive changes at the beginning of the year, with founder Ermenegildo Zegna stepping down as CEO and being succeeded by Gianluca Tagliabue, the former CFO and COO, which, while seen as smooth, may still pose challenges for future margin improvements.
See More
J.B. Hunt Reports Q4 Revenue Slightly Below Estimates, Shares Drop 4.2%
- Financial Performance: J.B. Hunt Transport Services Inc. reported fourth-quarter revenue of $3.097 billion, slightly below the market expectation of $3.099 billion, indicating pressure in the competitive transport market.
- Earnings Beat: Despite the revenue miss, J.B. Hunt's earnings per share came in at $1.90, exceeding analyst expectations of $1.77, suggesting effective cost control measures by the company.
- Stock Price Movement: Following the earnings report, J.B. Hunt's shares fell 4.2% in pre-market trading to $197.86, reflecting investor disappointment over the revenue shortfall.
- Market Dynamics: Other companies like TryHard Holdings and High Roller Technologies also experienced significant pre-market fluctuations, with TryHard's shares dropping 16.4% due to a cooperation announcement, while High Roller saw a 12.9% decline after signing a letter of intent.
See More
Deutsche Bank Cuts Shift4 Payments Price Target to $65
- Rating Downgrade: Deutsche Bank downgraded Shift4 Payments (NYSE:FOUR) price target from $100 to $65 and changed its rating from Buy to Hold, indicating a cautious outlook on the company's future growth.
- Price Target Increase: Morgan Stanley raised Rocket Lab Corp (NASDAQ:RKLB) price target from $67 to $105, upgrading its rating from Equal-Weight to Overweight, reflecting optimism about its future performance.
- Price Target Cut: Morgan Stanley lowered Kraft Heinz Co (NASDAQ:KHC) price target from $27 to $24, downgrading its rating from Equal-Weight to Underweight, signaling concerns about its market performance.
- Target Price Increase: JP Morgan raised Honeywell International Inc. (NASDAQ:HON) price target from $218 to $255, upgrading its rating from Neutral to Overweight, reflecting confidence in its future growth potential.
See More
Ermenegildo Zegna 2025 Earnings Call Highlights
- Revenue Growth: Ermenegildo Zegna reported 2025 revenues of EUR 1.917 billion, reflecting a 1% increase year-over-year, with Q4 revenues reaching EUR 591 million, up 4.6%, indicating strong performance in the direct-to-consumer (DTC) channel, which accounted for 82% of brand revenues.
- Channel Strategy Shift: Management underscored a deliberate reduction in wholesale reliance, with Zegna brand wholesale revenues declining 17% in Q4, representing only 12% of brand revenue, while DTC revenues grew 10%, demonstrating a firm commitment to a retail-first strategy.
- Regional Performance Disparities: Despite a 10% decline in Greater China revenues in Q4, the EMEA and Americas markets grew by 7% and 16%, respectively, showcasing the company's resilience in global markets, particularly with double-digit growth in the U.S.
- Leadership Transition: Zegna announced a leadership transition, appointing Gianluca Tagliabue as Group CEO and Edoardo and Angelo Zegna as co-CEOs of the brand, aimed at strengthening family leadership succession and brand development.
See More
Ermenegildo Zegna Group Revenue Analysis for FY 2025
- Q4 Revenue Growth: In Q4 2025, Ermenegildo Zegna Group reported revenues of €591 million, reflecting a 0.3% year-over-year increase and a 4.6% organic growth, indicating a sustained acceleration compared to Q3, driven by the company's strategic focus on the Direct-to-Consumer (DTC) channel.
- Brand Performance Disparity: The ZEGNA brand achieved revenues of €1.181 billion for FY 2025, marking a 1.5% year-over-year increase, with Q4 revenues at €361.7 million, up 2.4%, showcasing strong growth in the DTC channel; in contrast, Thom Browne's revenues fell 14.7% due to a contraction in the wholesale channel.
- Geographic Performance: For FY 2025, Zegna's revenues in the Americas reached €566 million, up 7.9%, demonstrating robust performance particularly driven by the DTC channel, which further solidifies its market position in this region.
- New Leadership Structure: In November 2025, Zegna Group announced a new leadership structure with Gianluca Tagliabue as CEO, marking a transition to a new generation of leadership, which is expected to drive the company's strategic development in the future.
See More
Ermenegildo Zegna Downgraded by BofA, Shares Plunge 13.25%
- Rating Downgrade Impact: Bank of America analyst Daria Nasledysheva downgraded Zegna's rating from buy to hold, causing the stock to plummet 13.25% during the trading session, closing at $9.56, indicating market concerns about its future performance.
- Price Target Adjustment: Nasledysheva lowered Zegna's price target from $11.50 to $11.20, reflecting a cautious outlook on the company's transformation into a luxury leisurewear brand, suggesting diminished confidence in its growth potential.
- Brand Growth Challenges: The analyst highlighted potential growth lag for Zegna's Thom Browne and Tom Ford brands, particularly following recent C-suite changes, which may hinder margin improvement and increase future uncertainties.
- Executive Changes Context: Earlier this year, Zegna underwent several executive changes, with founder Ermenegildo Zegna stepping down as CEO and Gianluca Tagliabue taking over, and while this transition appears smooth, the market remains cautious about the new leadership team's performance.
See More
Ermenegildo Zegna Downgraded by BofA, Shares Drop 13%
- Analyst Downgrade Impact: Bank of America analyst Daria Nasledysheva downgraded Zegna's rating from Buy to Neutral, causing the company's stock to plummet over 13% during the trading session, reflecting market concerns about its brand outlook.
- Price Target Adjustment: Nasledysheva lowered Zegna's price target from $11.50 to $11.20, indicating a cautious stance on the company's future profitability, which may affect investor confidence.
- Brand Growth Concerns: The analyst expressed worries about Zegna's Thom Browne and Tom Ford brands potentially becoming growth laggards, further intensifying market skepticism regarding the company's strategic transformation.
- Executive Changes Impact: Zegna underwent executive changes at the beginning of the year, with founder Ermenegildo Zegna stepping down as CEO and being succeeded by Gianluca Tagliabue, the former CFO and COO, which, while seen as smooth, may still pose challenges for future margin improvements.
See More
J.B. Hunt Reports Q4 Revenue Slightly Below Estimates, Shares Drop 4.2%
- Financial Performance: J.B. Hunt Transport Services Inc. reported fourth-quarter revenue of $3.097 billion, slightly below the market expectation of $3.099 billion, indicating pressure in the competitive transport market.
- Earnings Beat: Despite the revenue miss, J.B. Hunt's earnings per share came in at $1.90, exceeding analyst expectations of $1.77, suggesting effective cost control measures by the company.
- Stock Price Movement: Following the earnings report, J.B. Hunt's shares fell 4.2% in pre-market trading to $197.86, reflecting investor disappointment over the revenue shortfall.
- Market Dynamics: Other companies like TryHard Holdings and High Roller Technologies also experienced significant pre-market fluctuations, with TryHard's shares dropping 16.4% due to a cooperation announcement, while High Roller saw a 12.9% decline after signing a letter of intent.
See More
Deutsche Bank Cuts Shift4 Payments Price Target to $65
- Rating Downgrade: Deutsche Bank downgraded Shift4 Payments (NYSE:FOUR) price target from $100 to $65 and changed its rating from Buy to Hold, indicating a cautious outlook on the company's future growth.
- Price Target Increase: Morgan Stanley raised Rocket Lab Corp (NASDAQ:RKLB) price target from $67 to $105, upgrading its rating from Equal-Weight to Overweight, reflecting optimism about its future performance.
- Price Target Cut: Morgan Stanley lowered Kraft Heinz Co (NASDAQ:KHC) price target from $27 to $24, downgrading its rating from Equal-Weight to Underweight, signaling concerns about its market performance.
- Target Price Increase: JP Morgan raised Honeywell International Inc. (NASDAQ:HON) price target from $218 to $255, upgrading its rating from Neutral to Overweight, reflecting confidence in its future growth potential.
See More
