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LVMH shares experienced a significant decline, falling 3.4 percent after a previous drop of 2.2 percent earlier in the week. This ongoing weakness suggests growing investor caution, potentially due to economic concerns, industry news, or disappointing company data. The focus now shifts to the next support zone.
LVMH shares surged over 7% following a US-China agreement to reduce tariffs, boosting market sentiment and lowering recession probabilities. Despite a 45% decline over the past year, the company's fundamentals remain strong, with 2024 organic sales growth at €84.7 billion and an operating margin of 23.1%. The stock is testing key resistance at €530, with potential for further gains if trade tensions remain stable.
Evercore has hired Luigi De Vecchi, a senior dealmaker from Citigroup, to lead its continental European business and establish a new office in Milan. De Vecchi, known for his role in major transactions, marks a significant addition as Evercore expands its European presence, following recent hires in France. This move comes amid Citi's restructuring efforts under its new global banking chief.
Barclays has downgraded LVMH to "equal weight" from "overweight," reducing its price target to €550 due to a challenging U.S. economic outlook and margin pressures. The brokerage anticipates a 3% revenue decline in LVMH's Fashion & Leather Goods division and a 15% drop in group-wide EBIT, citing weakening luxury demand and rising tariffs. Despite a significant share price drop, LVMH's valuation remains in line with its five-year average, though past downturns suggest potential further declines.
Barclays has downgraded LVMH's rating from Overweight to Equal Weight, reducing the price target from EUR 755 to EUR 550 due to concerns over slowing growth in the U.S. market, a key driver for the luxury goods company. Despite this, analysts project an average target price of $158.06, indicating a potential upside of 43.04% from the current price of $110.50, with a consensus recommendation of "Outperform." GuruFocus estimates a fair value of $190.77 for LVMH, suggesting a 72.64% upside.
Barclays has downgraded LVMH's stock rating from Overweight to Equalweight, slashing the price target from EUR755 to EUR550 due to concerns over a potential slowdown in the U.S. market, which is crucial for its Fashion & Leather Goods division. The analyst predicts a decline in EBIT margins and a 16% reduction in earnings per share for fiscal year 2025, reflecting a cautious outlook amid challenges faced by LVMH's brands. Other firms, including Morgan Stanley and Bernstein, have also adjusted their ratings and targets, indicating a broader skepticism about LVMH's near-term performance.
Deutsche Bank has lowered its price target for Kering SA to €177 from €205 while maintaining a Hold rating. The company's first-quarter revenue fell 14% at constant exchange rates to €3,883 million, missing estimates, with Gucci sales down 25% and Yves Saint Laurent down 9%. The luxury sector's mixed performance has led to increased uncertainty regarding Kering's investment outlook, particularly following changes in Gucci's creative direction.
Hermes has surpassed LVMH, the maker of Louis Vuitton, to become the world's most valuable luxury group. This shift highlights the evolving dynamics within the luxury market, as consumer preferences continue to shape brand valuations and market leadership.
UBS has maintained a "Neutral" rating on LVMH, citing that European luxury goods manufacturers are likely to pass on new US tariffs to consumers through price increases. Analyst Zuzanna Pusz warns that the risk from declining consumer sentiment is significant, with customs duties potentially reducing operating results by an average of 7%. The impact is expected to be lowest for brands like LVMH and Prada, while Salvatore Ferragamo and Burberry may face the highest effects.
UBS has reduced its price target for LVMH from 745 to 650 euros while maintaining a "Neutral" rating ahead of the luxury goods group's quarterly results. Analyst Zuzanna Pusz noted that, despite a solid long-term investment outlook, the upcoming first-quarter results are unlikely to indicate a return to positive earnings momentum.
LVMH Moet Hennessy Louis Vuitton SE
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