Jefferies analyst David Hayes maintained a Hold rating on L’Oreal today and set a price target of €369.00.
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David Hayes has given his Hold rating due to a combination of factors influencing L’Oreal’s recent performance. The company’s second-quarter results were slightly underwhelming, primarily due to a slowdown in the Luxe and European segments, despite some improvement in North America. This performance was affected by various operational challenges, including IT system-related sales shifts expected in the US and China over the next couple of years.
Additionally, the true underlying organic sales growth fell short of expectations, and the operational margin for the first half of the year was maintained only through a reduction in advertising and promotional expenses. Given these circumstances, Hayes believes that there is insufficient momentum to justify a more favorable rating compared to L’Oreal’s industry peers.
In another report released on July 25, UBS also maintained a Hold rating on the stock with a €353.00 price target.