Deutsche Bank announced on Friday that it had lowered its price target for L'Oréal from 335 to 280 euros, while maintaining its 'sell' recommendation on the stock.

In a research note, the analyst stresses that all indicators currently point to a further slowdown in the French cosmetics giant's organic growth in the first half of 2025.

The intermediary thus expects like-for-like growth of just 2% for the first six months of the next financial year, compared with the current consensus of 5%.

In its view, the stock is now facing a possible change in the market's perception of its long-term growth rate, which it believes could lead investors to become more interested in current valuation multiples.

Deutsche Bank believes that this paradigm shift could push the share to trade at a PER approaching 20x, a prospect that has led it to reduce its target on the stock.

By way of comparison, the stock trades today on the basis of a price-earnings ratio close to 24x over a 12-month horizon.

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