LVMH Moët Hennessy Louis Vuitton, or LVMH (FR:MC) (LVMUY) is drawing investor attention as speculation swirls over a potential deal with Italian fashion house Armani. Although LVMH’s size makes any deal big news, a top analyst warns that takeover rumors may boost short-term excitement but add uncertainty to its long-term outlook and value.
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LVMH is a European fashion house known for its iconic luxury brands like Dior, Louis Vuitton, Sephora, Fendi, Bulgari, and more. Speculation over Armani’s deal began after Giorgio Armani’s death in early September. Following his passing, L’Oréal (LRLCF), LVMH, and EssilorLuxottica (ESLOY) emerged as the top potential buyers of Armani’s beauty and fashion empire.
TD Cowen Evaluates Potential Deal
Yesterday, four-star-rated analyst Oliver Chen at TD Cowen reiterated his Hold rating on MC stock, keeping his price target at €500. This implies a downside of 3.4% from current levels. Chen estimates that Armani could be worth about $5 billion to $7 billion, based on a 12–16× EV/EBITDA multiple. The valuation reflects Armani’s rare brand appeal, potential cost synergies, and strong global reputation for minimalist design and luxury, though growth and margin swings could limit upside.
He further stated that LVMH values Armani’s timeless appeal but will remain careful on price. He sees potential synergies from LVMH’s scale in fashion and leather goods, global marketing reach, and respect for each brand’s creative independence.
However, LVMH is facing headwinds, including a 9% sales drop in its Fashion and Leather division in the first half of 2025 due to softer demand in Asia. Even so, TD Cowen called Armani an “opportunistic deal” that LVMH is likely to consider. Chen also pointed out that LVMH typically seeks out timeless heritage labels, jewelry names, and strategic opportunities—making Armani a natural match for its acquisition playbook.
Is LVMH Stock a Good Buy?
Overall, MC stock has received a Moderate Buy rating on TipRanks, backed by a total of 17 recommendations from analysts. It includes eight Buys and nine Holds assigned in the last three months. The LVMH share price target is €554.53, which is 7.13% higher than the current trading level.
