L'Oréal: Stifel still buying but reduces TP
(CercleFinance.com) - Stifel maintains its Buy rating on L'Oréal shares, with a target price reduced from E440 to E410.
The analyst says he has reduced his EBIT forecast by 3% for 2024-2025, following a weaker-than-expected Q3 (LFL) organic growth performance.
The improvement in Chinese consumer confidence, currently at its lowest level since the COVID-19 era, could be a potential catalyst for the share in 2025, the broker believes.
Nevertheless, Stifel still expects compound annual sales growth of +7% over 2024-2027 (versus +4-5% for the market), with profitability amongst the best in its category.
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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.
The analyst says he has reduced his EBIT forecast by 3% for 2024-2025, following a weaker-than-expected Q3 (LFL) organic growth performance.
The improvement in Chinese consumer confidence, currently at its lowest level since the COVID-19 era, could be a potential catalyst for the share in 2025, the broker believes.
Nevertheless, Stifel still expects compound annual sales growth of +7% over 2024-2027 (versus +4-5% for the market), with profitability amongst the best in its category.
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.