L'Oréal: share worth it according to Morgan Stanley

(CercleFinance.com) - L'Oréal shares are one of the biggest winners in the CAC 40 on Tuesday, following an upgrade by Morgan Stanley, which considers the French cosmetics group well positioned to win market share.


In a report on the European FMCG sector, analysts at the US investment bank said that they have upgraded their rating on the stock to "overweight" from "equal weight", with an unchanged target price of E450.

The Wall Street firm justifies its upgrade by the "superior" growth recorded by the French make-up giant, its low exposure to white brands and, above all, its ability to win market share.

In a beauty market that is considered "highly fragmented", with smaller players struggling to survive, highly capitalised groups such as L'Oréal can more easily invest in innovation and marketing, and thus accelerate their market share gains, Morgan Stanley says.

The L'Oréal share is currently up over 0.5%, one of the best performers on a flat CAC 40 index. YTD it is up over 25%.


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