LVMH : Oddo BHF confirms its recommendation on the stock
November 28, 2024 at 04:15 am EST
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Oddo BHF maintains its 'outperform' rating on LVMH shares, with an unchanged target price of 698 euros.
The short-term outlook is likely to remain gloomy, but the potential for unpleasant surprises now seems limited, based on our latest forecasts", says the analyst.
Oddo BHF also believes that the lesser importance of China in the Q4 sales of the group's main divisions gives reason to hope for a very slight improvement in growth after the -3% observed in Q3 (-5% for Fashion and Leather Goods), "even if we perceive that the climate in China remains difficult and that the hoped-for improvement in the USA and Europe is very gradual".
We have not significantly modified our group sales growth forecasts: we expect -1.4% for Q4 24 and +3.8% for FY 25", concludes the broker.
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LVMH Moët Hennessy Louis Vuitton SE is the world leader in luxury products. Net sales break down by family of products as follows:
- fashion and leather items (48.9%): brands such as Louis Vuitton, Kenzo, Celine, Fendi, Marc Jacobs, Givenchy, etc.;
- watches and jewels (12.8%): Bulgari, TAG Heuer, Zenith, Hublot, Chaumet, Fred brands, Tiffany, etc.;
- perfumes and cosmetics products (9.6%): perfumes (Christian Dior, Guerlain, Loewe, Kenzo brands, etc.), makeup products (Make Up For Ever, Guerlain, Acqua di Parma, etc.), etc.;
- wines and spirits (7.7%): champagnes (Moët & Chandon, Mercier, Veuve Clicquot Ponsardin, Dom Pérignon brands, etc.; No. 1 worldwide), wines (Cape Mentelle, Château D'Yquem, etc.), cognacs (mainly Hennessy; No. 1 worldwide), whisky (mainly Glenmorangie), etc.;
The remaining sales (21%) are from selective distribution through the Sephora, DFS, Miami Cruiseline chains and Le Bon Marché and La Samaritaine department stores.
At the end of 2023, products are marketed via a network of 6,097 outlets located throughout the world.
Net sales are distributed geographically as follows: France (7.9%), Europe (16.4%), Japan (7.3%), Asia (30.8%), the United States (25.3%) and other (12.3%).
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