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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