LVMH: Morgan Stanley downgrades to 'in-line weighting

(CercleFinance.com) - On Friday, Morgan Stanley lowered its recommendation on LVMH shares from 'overweight' to 'weighted in line', with a price target reduced from 860 to 790 euros.


While the intermediary expects the French group to continue to gain market share in a sector that is 'structurally attractive', he also believes that its share price will move without much direction over the coming months.

The analyst justifies his prediction by the general deterioration in demand seen at the end of 2023, which he believes should be accompanied by a complicated start to 2024 in view of the high basis for comparison in 2023.

Morgan Stanley is also concerned about the risk posed by the group's, and the sector as a whole's, heavy dependence on Chinese consumers.

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