L'Oréal: Berenberg reduces target price
(CercleFinance.com) - Berenberg announced on Monday that it had lowered its price target for L'Oréal from E502 to E454, following the publication of the cosmetics giant's 2024 annual results.
The broker says that the French group posted LFL sales growth of 2.5% in Q4, below the consensus target of 3.9%.
For 2025, L'Oréal has also stated that it expects the beauty market to grow by between 4% and 4.5%, which implies a deceleration from the 4.5% recorded last year, it adds.
The analyst nevertheless argues that this slowdown is well factored into the share price, which is trading on a P/E of 26.4x, at the bottom end of the trading range of 24x to 45x in which it has been in since 2017.
Given the group's competitive positioning in its market and the attractive nature of its offering in the beauty segment, Berenberg is therefore maintaining its Buy recommendation on the share.
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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 broker says that the French group posted LFL sales growth of 2.5% in Q4, below the consensus target of 3.9%.
For 2025, L'Oréal has also stated that it expects the beauty market to grow by between 4% and 4.5%, which implies a deceleration from the 4.5% recorded last year, it adds.
The analyst nevertheless argues that this slowdown is well factored into the share price, which is trading on a P/E of 26.4x, at the bottom end of the trading range of 24x to 45x in which it has been in since 2017.
Given the group's competitive positioning in its market and the attractive nature of its offering in the beauty segment, Berenberg is therefore maintaining its Buy recommendation on the share.
Copyright (c) 2025 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.