In a report released today, David Hayes from Jefferies maintained a Hold rating on L’Oreal, with a price target of €371.00.
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David Hayes has given his Hold rating due to a combination of factors influencing L’Oreal’s current market position. The company is demonstrating agility and maintaining its leadership in digital innovation and brand investment, which are crucial for staying competitive. However, despite outperforming the broader category in the US with growth slightly above 3%, the overall market dynamics present challenges.
In particular, the competitive landscape in China is becoming increasingly intense, particularly from local mass-market brands, which could impact L’Oreal’s growth in the premium segment. Additionally, while L’Oreal is keeping pace with category growth, the question remains whether its current valuation justifies its price-to-earnings ratio. These factors contribute to the decision to rate the stock as Hold, suggesting a cautious approach given the mixed market signals.
In another report released on August 29, J.P. Morgan also maintained a Hold rating on the stock with a €360.00 price target.