Jefferies has revised its price target for L'Oreal (LRLCY, Financial), setting it slightly lower at EUR 369, down from a previous target of EUR 374. The investment firm maintains a Hold rating for the cosmetic giant’s shares.
The adjustment follows L'Oreal's recent quarterly financial report. Jefferies has flagged potential risks of a downturn, although they acknowledge that the firm's shares are stable for now. There was some initial confusion regarding the company's organic sales growth due to the effects of IT transitions expected in the first quarters of 2024 and 2025. However, after clarifying these impacts, the underlying organic revenue growth is indicated to be at 2.6%, which is above the global category average of approximately 2%.
