Jefferies downgraded L’Oreal (LRLCY) to Underperform from Hold with a price target of EUR 340, down from EUR 371. The current 29-times next-twelve-months earnings multiple demands mid-term organic sales growth of over 5% and a virtuous cycle for profitability, including expanding gross margins and leverage, but those dynamics feel unlikely now, the analyst tells investors in a research note. The beauty category is reverting to a well established historic structural growth norm of about 4% following the “unique China boom”, the firm added.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on LRLCY:
- L’Oreal: Balancing Digital Innovation and Competitive Challenges with a Hold Rating
- L’Oreal removed from European Conviction List at Goldman Sachs
- L’Oreal price target raised to $105 from $95 at Argus
- L’Oreal upgraded to Neutral from Underweight at JPMorgan
- L’Oréal Reports Steady Growth in 2025 Half-Year Results