Can Ermenegildo Zegna NV (ZGN) Sustain the Momentum with Affluent Consumers?

Ermenegildo Zegna Group (NYSE:ZGN) is among the best Italian stocks to buy in 2026. On February 12, Morgan Stanley upgraded Ermenegildo Zegna Group (NYSE:ZGN) stock rating to Equalweight from Underweight and assigned it a price target of $11. For this action, Morgan Stanley analysts pointed to Zegna’s better-than-expected Q4 2025 sales results.

Morgan Stanley analyst Natasha Bonnet is cautiously optimistic regarding Zegna’s store portfolio optimization. However, the analyst remains concerned about the company’s wholesale rationalization, particularly for the Tom Ford and Thom Browne brands.

Previously on February 5, UBS analysts upgraded Ermenegildo Zegna to a Buy from a Neutral and boosted the price target to $11.50 from $11. In taking this action, the analysts pointed to strong momentum in the company’s core Zegna brand, noting that Western consumers were driving this momentum.

The Zegna brand contributes about 60% of the company’s total sales. According to the analysts, the company’s strategies are resonating with affluent consumers across generations. They note that this is contributing to growth prospects and solid profitability.

In Q4, Ermenegildo Zegna’s revenue rose 4.6% to €591 million. Full-year revenue climbed 1% to €1.917 billion.

Headquartered in Trivero, Italy, Ermenegildo Zegna NV (NYSE:ZGN) makes and sells luxury clothing, footwear, and accessories. It also sells jewelry, fragrances, and eyewear. It sells its products through brands such as Zegna, Tom Ford fashion, and Thom Browne.

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