L'Oréal: benefits from positive analyst comments

(CercleFinance.com) - L'Oréal shares were one of the best performers on the CAC 40 index on Monday, as Goldman Sachs added the stock to its "conviction list".


At 11.45am, L'Oréal was up 1%, compared with a CAC 40 index that was up just 0.2% at the same time.

In comments released in the morning, Goldman Sachs maintains its buy rating on the French cosmetics giant, while raising its target price on the stock from 340 to 400 euros.

It notably appreciates the group's new CEO and its digital strategy that began in 2010, which will continue to generate industry-leading organic sales growth, while also significantly increasing margins through the direct-to-consumer (DTC) opportunity.

Goldman expects online sales to account for 50% of the group's revenue within three years, up from 26.6% last year.

Goldman Sachs also notes that the stock's valuation appears "attractive" when compared to its most credible peers.



Copyright (c) 2021 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.