L'Oréal: RBC upgrades stock, TP up to E410
(CercleFinance.com) - RBC announced on Wednesday that it had upgraded its opinion on L'Oréal shares from "underperform" to "sector perform", with a target price raised from E340 to E410.
In a report, the broker explains that investor attention has recently focused on the ability of major consumer staples groups to protect their earnings.
The analyst considers this approach to be a real "aberration", believing that it is growth in sales volumes that enables them to gain market share and generate cash.
From this point of view, he continues, L'Oréal has managed to maintain organic growth of around 5% over the last two years, despite sluggish demand, particularly in China, and a trend towards higher prices.
Conversely, the FMCG sector as a whole suffered a contraction in sales volumes last year, he points out.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
In a report, the broker explains that investor attention has recently focused on the ability of major consumer staples groups to protect their earnings.
The analyst considers this approach to be a real "aberration", believing that it is growth in sales volumes that enables them to gain market share and generate cash.
From this point of view, he continues, L'Oréal has managed to maintain organic growth of around 5% over the last two years, despite sluggish demand, particularly in China, and a trend towards higher prices.
Conversely, the FMCG sector as a whole suffered a contraction in sales volumes last year, he points out.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.