On Tuesday, Barclays raised its recommendation on LVMH shares from 'in-line weighted' to 'overweight', with a price target raised from 825 to 937 euros.

In a study devoted to luxury goods, the intermediary explains that it favors the sector's major players due to the success of their brands and their price control.

While acknowledging that LVMH's performance in the first and second quarters could be somewhat mixed - a scenario which he believes the market has already identified - the analyst says he sees no fundamental factors likely to weigh on the performance of its strategic fashion and leather goods division, which he believes should manage to maintain its margins.

Barclays thus expects the French giant to return to solid growth in the second half of the 2024 financial year.

While noting that the share has already performed well since the beginning of the year, the professional underlines that its progress is currently behind that of Prada, Richemont and Hermès, a performance he deems unjustified given the quality of LVMH's profile.

Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.