LVMH: HSBC upgrades stock, TP E999

(CercleFinance.com) - HSBC has upgraded its rating on the LVMH share from "hold" to "buy" on Monday, with a target price raised from 750 euros to 999 euros.


Although it expects the US market to be under pressure in Q1 for the Louis Vuitton, Dior and cognac brands, the broker believes that these difficulties should only be "temporary".

Regarding Dior, which generates 16% of total operating profit, the broker says that it anticipates a year of "consolidation" following the quadrupling of the brand's sales over the last four years.

Louis Vuitton, however, could accelerate under the impetus of its new CEO, Pietro Beccar, whose first measures - such as the appointment of Pharrell Williams - prove that the mission of the luxury group is not to "sell handbags", but rather "culture", HSBC adds.

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