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Why Did HSBC Turn Bullish on LVMH (MC) Stock?

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HSBC upgraded its rating from Hold to Buy on the luxury brand LVMH’s stock.

Why Did HSBC Turn Bullish on LVMH (MC) Stock?

French luxury products company LVMH Moët Hennessy Louis Vuitton, or LVMH (FR:MC) (LVMUY), is again in the spotlight. Recently, four-star-rated analyst Erwan Rambourg from HSBC upgraded his rating from Hold to Buy on MC stock. Rambourg also raised his price target from €535 to €625, predicting an upside of over 25% from current levels.

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LVMH is a European fashion house known for its iconic luxury brands like Dior, Louis Vuitton, Sephora, Fendi, Bulgari, and more. The company is primarily listed on the Euronext Paris exchange but also trades over-the-counter (OTC) in the U.S.

HSBC Sees Big Potential for Dior

Rambourg highlighted confidence in Jonathan Anderson’s leadership of Dior’s (FR:CDI) creative direction. The bank noted that his menswear collection in late June generated over one billion impressions and expects strong attention for his upcoming womenswear collection.

For context, Anderson, a Northern Irish fashion designer, has been the creative director of Dior since 2025.

Additionally, he pointed out that Dior is addressing creativity and accessibility by introducing more affordable options, including the Dior Toujours, Groove, and D-Motion handbags. The firm believes there is more upside than risk with Anderson leading Dior’s creative vision.

Big Designer Moves

HSBC’s upgrade comes amid a wave of designer changes sweeping the luxury fashion industry. The bank expects Anderson’s Dior collection to attract significant attention, alongside upcoming releases from Demna at Kering’s (FR:KER) Gucci and Mr. Blazy at Chanel.

Furthermore, Rambourg noted that multi-brand distributors report strong excitement for next year’s launches, which could increase store traffic even if immediate sales conversion is modest.

Is LVMH Stock a Good Buy?

Overall, MC stock has received a Moderate Buy rating on TipRanks, backed by a total of 18 recommendations from analysts. It includes nine Buys and nine Holds assigned in the last three months. The LVMH share price target is €557.38, which is 12.34% higher than the current trading level.

See more MC analyst ratings

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