Freedom advised Brunello Cucinelli stock. Why does he expect them to grow by a third?

Freedom Finance advised to buy shares of Italian luxury cashmere brand Brunello Cucinelli - it predicts a 34% increase from the current value. Freedom notes that the company is showing double-digit revenue growth and believes that it is capable of growing even amid high volatility in the luxury market.

Freedom Finance advised to buy shares of Italian luxury brand Brunello Cucinelli. The company will benefit from the recovery of the luxury market in 2026, according to Mikhail Chistyakov, head of investment research at Freedom Finance. He expects the brand's shares to rise to €110, which is 34% more than their current value.

Brunello Cucinelli stands out among its competitors with its multi-channel sales model, exclusive network of boutiques and Made in Italy quality - the products are made by Italian artisan workshops at their own production sites, and solvent consumers appreciate it.

Freedom points out that in 2025 the company completed its 2024-2026 investment program ahead of schedule: it doubled the area of its key factory and opened two new ateliers. As capital expenditure declines, free cash flow could reach around €185m by 2027 - double what it was in 2024, Chistyakov believes.

According to the company's preliminary figures, revenue in 2025 grew 11.5% at constant currency to €1.41 billion, driven by retail sales growth of 12.9%, including a 14.5% increase in the fourth quarter of 2025 alone. Meanwhile, Asia delivered the highest revenue growth of 15.3%. Brunello Cucinelli expects revenue of €1.8 billion by 2028.

Freedom notes that the company's presence in various international markets exposes it to geopolitical and macroeconomic risks. In addition, Brunello Cucinelli, known for its cashmere products, depends on the supply of this and other raw materials, the prices of which are difficult to predict. Another worrying signal is that the relationship between Brunello Cucinelli and the producers of its products is not governed by multi-year agreements, but is based on orders for collections of individual seasons, Freedom emphasizes.

Brunello Cucinelli's quotations have fallen by 34% over the past 12 months. In September last year, the stock lost almost 19% in two days following accusations by short-seller Morpheus Research that the brand was continuing to do business in Russia.

Morgan Stanley started tracking Brunello Cucinelli shares in January 2026 and immediately assigned an Overweight rating (buy recommendation) with a €130 target price. This is the highest target among analysts and implies a 58.6% upside to the stock's closing price on Feb. 4. The high-end ready-to-wear segment remains one of Morgan Stanley's favorites for 2026, according to an analyst note (available from Oninvest). At the same time, Brunello Cucinelli is well positioned to continue its steady and balanced growth even amid volatility in the luxury sector, Morgan Stanley analysts said.

Now nine analysts out of 16 advise buying the company's securities (Buy and Overweight ratings), another six advise holding (Hold) and only one advises selling (Sell), Market Screener shows. The average target price of €107.7 implies a potential upside of 31.4%.