Analyst Luca Solca from Bernstein maintained a Buy rating on LVMH Moet Hennessy Louis Vuitton and keeping the price target at €600.00.
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Luca Solca has given his Buy rating due to a combination of factors that highlight LVMH’s resilience and strategic adaptability in the luxury market. Despite challenges such as reduced spending from Chinese consumers and pressure on the Western middle class due to inflation, LVMH’s major brands, Louis Vuitton and Dior, remain industry leaders. The company has proactively addressed underperformance, particularly at Dior, by introducing a new creative direction under J.W. Anderson, which is expected to revitalize the brand.
LVMH’s strategic initiatives, such as leveraging its scale for innovative marketing and product launches, position it well to capitalize on potential reversals of current industry headwinds. The company’s valuation is trending towards its 10-year average, indicating strong investor confidence. As the luxury market undergoes structural changes, LVMH’s scale and market leadership make it a preferred choice for new luxury consumers and investors. Solca’s target price of €600 reflects the expectation that LVMH will continue to outperform in the evolving luxury landscape.
In another report released today, Deutsche Bank also upgraded the stock to a Buy with a €635.00 price target.