L'Oréal: Stifel still a buyer

(CercleFinance.com) - Stifel maintains its "buy" rating on L'Oréal shares, with an unchanged target price of 425 euros.


The broker expects 7% organic growth in Q3, driven by the Cosmetics division (+16% organic) and Luxury Goods (+15%).

However, the "Professional" and "Consumer" segments should be a little more depressed, with respective evolutions of +1% and -0.5%, the analyst says.

The broker says that L'Oréal's long-term story in China "remains compelling", with growth drivers intact in skincare, dermo-cosmetics, e-commerce and luxury.

In addition, travel retail and make-up sales are attractive recovery options for 2022 and beyond.

The share is currently up almost 1%, just outperforming the market in Paris.


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