LVMH: Invest Securities reduces target price
(CercleFinance.com) - Invest Securities maintains its "neutral" rating on LVMH shares, reducing its target price for them from 702 euros to 631 euros.
The broker still expects organic growth of around 15% in Q3, adding that over the summer, the group's influence in the US and Europe helped to put into perspective the group's seemingly unclear performance in China.
Analysts add that at this stage, there could well be an increase in 2022 earnings estimates, even though Q4 appears uncertain.
While analysts imagine that the current rise in the cost of money could imply a working assumption for LVMH that would lead to a risk-free rate of 3.5% (2023 basis), their target price (all other things being equal), would be reduced to 563 euros, compared with 631 euros for an instantaneous risk-free rate of 2.8%, they conclude.
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