Buy this luxury stock with more than 20% upside, Bank of America says

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Bank of America says that Zegna’s impressive growth story in the luxury sector offers investors an opportunity to invest. Bank of America upgraded the shares of menswear designer Zegna to buy on Monday from neutral, and raised its price target from $16.50 to more than 20% above its closing price from Friday. Bank of America’s Ashley Wallace wrote in a report that Zegna had one of the highest earnings growth profiles in Italy and improved profitability. “Based on our calculations, Zegna trades for 23x P/E 2020E, which is a cheap price for an EPS of 17%