On Tuesday, Morgan Stanley raised its recommendation on L'Oréal shares to 'overweight' from 'in-line weighting', with an unchanged price target of 450 euros.

In a study of the European FMCG sector, analysts at the US investment bank rate the French cosmetics group as well positioned to win market share.

The Wall Street firm justifies its upgrade by the 'superior' growth recorded by the French make-up giant, its low exposure to white brands and, above all, its ability to win market share.

In a beauty market considered 'highly fragmented', with smaller players fighting for survival, highly capitalized groups such as L'Oréal can more easily invest in innovation and marketing, and thus accelerate their market share gains, explains Morgan Stanley.

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