LVMH: Invest Securities resets target price
(CercleFinance.com) - Invest Securities says that with the health crisis having passed its peak, the issue at stake is to determine how to get out of the crisis and over what timescale LVMH will be able to neutralise its depressive effects.
The broker still believes that the Chinese market alone will not be able to make up for everything else, even though the sales of the domestic cluster cannot be examined separately from the whole Chinese market (including HK and Singapore) in the upshake of tourist flows.
Analysts add that there is no doubt that LVMH will be a potential winner from the crisis, although the market has already taken note of this, not modifying a valuation that is based on the first historical decile of a relative P/E of 1.7x on a 2020/21 average.
This justifies the broker's Neutral rating on the stock, with a reset target price of 389 euros (about 10 euros above its current price).
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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 broker still believes that the Chinese market alone will not be able to make up for everything else, even though the sales of the domestic cluster cannot be examined separately from the whole Chinese market (including HK and Singapore) in the upshake of tourist flows.
Analysts add that there is no doubt that LVMH will be a potential winner from the crisis, although the market has already taken note of this, not modifying a valuation that is based on the first historical decile of a relative P/E of 1.7x on a 2020/21 average.
This justifies the broker's Neutral rating on the stock, with a reset target price of 389 euros (about 10 euros above its current price).
Copyright (c) 2020 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.