L'Oréal: Deutsche Bank maintains its 'sell' recommendation
(CercleFinance.com) - Deutsche Bank maintains its 'sell' recommendation on L'Oréal shares, with a target price of 350 euros, judging that the weakness of certain leading indicators is not yet reflected in the share price.
While noting that the share price has recently suffered from the ongoing economic slowdown, the analyst believes that the sectoral and geographic data available to him suggest that there may be future unpleasant surprises.
Deutsche points out that demand from suppliers such as Switzerland's Givaudan is continuing to weaken, a phenomenon also observed among perfume manufacturers such as Spain's Puig, he adds.
In his view, the market is not currently taking into account the consequences of the scenario of a fall in business volumes and the perfume mix.
The weakness of Internet searches for beauty products, an unfavorable precursor indicator, also suggests a risk of short-term disappointment, he concludes.
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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.
While noting that the share price has recently suffered from the ongoing economic slowdown, the analyst believes that the sectoral and geographic data available to him suggest that there may be future unpleasant surprises.
Deutsche points out that demand from suppliers such as Switzerland's Givaudan is continuing to weaken, a phenomenon also observed among perfume manufacturers such as Spain's Puig, he adds.
In his view, the market is not currently taking into account the consequences of the scenario of a fall in business volumes and the perfume mix.
The weakness of Internet searches for beauty products, an unfavorable precursor indicator, also suggests a risk of short-term disappointment, he concludes.
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.