L'Oréal: Deutsche Bank cuts its target price

(CercleFinance.com) - Deutsche Bank announced on Friday that it had reduced its target price for L'Oréal shares from E335 to E280, while maintaining its 'sell' recommendation on the stock.


The analyst says that all indicators currently point to a further slowdown in the French cosmetics giant's organic growth in H1 2025.

The broker thus expects LFL growth of just 2% in H1 of the next financial year, below the current consensus of 5%.

In its view, the stock is now facing a possible change in the market's perception of its long-term growth rate, which it believes could lead investors to become more interested in current valuation multiples.

Deutsche Bank believes that this paradigm shift could push the share to trade at a P/E approaching 20x, a prospect that has led it to reduce its target on the stock.

By way of comparison, the stock is currently trading at a P/E of close to 24x over a 12m horizon.


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