L’Oreal Downgraded to Sell on Slowing Growth Momentum and Weaker Outlook

In a report released today, David Hayes from Jefferies maintained a Sell rating on L’Oreal, with a price target of €337.00.

David Hayes has given his Sell rating due to a combination of factors linked to L’Oreal’s recent growth performance and outlook. Fourth‑quarter 2025 organic sales expansion came in notably below his expectations and likely under consensus, with underlying like‑for‑like trends weaker once IT‑related shipment timing effects are stripped out, especially in North Asia and the Luxe division.

This softer quarter drags full‑year 2025 like‑for‑like growth to only slightly above the global beauty market, while the two‑year growth trajectory has clearly decelerated in the second half versus the first. Hayes believes this slowdown, coupled with a less precise forward outlook, raises concerns about the sustainability of L’Oreal’s premium growth profile and justifies a more cautious, Sell stance on the shares.