LVMH Moët Hennessy Louis Vuitton, or LVMH (FR:MC) (LVMUY), has received an Outperform rating on TipRanks’ A.I. Stock Analysis, scoring 81 out of 100. Meanwhile, the A.I. analyst assigns a price target of €545.0 to MC stock, implying an upside of over 16% from the current levels.
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For context, TipRanks’ A.I. Stock Analysis provides automated, data-backed evaluations of stocks across key metrics, offering users a clear and concise view of a stock’s potential.
AI Analyst Points to LVMH’s Strong Brand Value
LVMH is a European fashion house known for its iconic luxury brands like Dior, Louis Vuitton, Sephora, Fendi, Bulgari, and more.
According to the A.I. Analysis, LVMH’s strong competitive advantage comes from its diverse and well-established brand portfolio. The tool provides a concise view of both the positive and negative factors behind the rating and score. Below is the screenshot for reference.
The A.I. tool indicates that although LVMH is experiencing an industry-wide slowdown with weaker demand from Chinese shoppers and uncertainty among U.S. consumers, these challenges are likely short-term. The company’s strong reputation and quality help maintain its value and pricing, even during market slowdown.
Speaking of challenges, LVMH reported its Q2 and first-half results last month with some concerning numbers. Net profit fell 22% year-over-year in the first half, while operating profit dropped 15%. In Q2, the core Fashion & Leather Goods segment saw a sharp 9% decline in sales compared to the same period last year.
Is LVMH Stock a Good Buy?
Overall, MC stock has received a Moderate Buy rating on TipRanks, backed by a total of 19 recommendations from analysts. It includes 10 Buys and nine Holds assigned in the last three months. The LVMH share price target is €566.09, which is 20.5% higher than the current trading level.
Year-to-date, MC stock has fallen over 26%, reflecting broader market pressures on the luxury sector.
