Around 2:30 p.m., the stock was up nearly 0.9% at 459.6 euros, compared with a 0.4% rise for the CAC 40 index.

In a research note released this morning, UBS analysts indicated they had lowered their target price on the stock from 706 to 640 euros, while maintaining their "Buy" rating.

The Swiss bank explained that it had revised its organic growth forecast for the first quarter down from 3% to 1%, citing negative currency effects, the impact of the conflict in the Middle East, and an unfavorable basis of comparison linked to the Louis Vuitton x Murakami collaboration, which had boosted sales a year ago.

A sluggish restart, but signs of recovery

Despite this relative caution, UBS expects an improving trend in the group's performance and reiterated its buy recommendation on the stock. From its perspective, the shares are now trading at a much more attractive valuation level, making it one of its preferred picks within the sector.

More broadly, the Swiss institution expects that any potential positive surprises, even modest ones, will be well received by investors during the earnings season, given the recent de-rating of the sector.

"In a particularly gloomy market climate and with valuation levels under pressure, we believe that even slight outperformances in the first quarter could trigger a very favorable market reaction," UBS warned.

"On a fundamental level, we continue to anticipate quarter-on-quarter progress for the majority of companies, although rigorous stock picking remains essential," it added.

In addition to LVMH, Richemont is its other preferred stock within the sector.

LVMH has not yet announced the release date for its first-quarter revenue, but it is expected around April 13.