LVMH: share price at a standstill, analyst lowers target
December 06, 2023 at 08:14 pm IST
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The LVMH share is showing signs of heaviness on Wednesday on the Paris Bourse, as analysts at Barclays have announced that they have lowered their price target on the stock.
At around 3:30 pm, the luxury giant is unchanged or almost unchanged, while at the same time, the CAC 40 index is up 0.6%.
Barclays, which downgraded its recommendation on the stock last September, says it has lowered its target from 820 to 800 euros.
In a note, the research firm says it is comfortable with its new 'weight in line' recommendation, saying it anticipates a slowdown in the group's growth momentum, as well as potential bad news for its profit margins.
While posting a slight gain of 4.8% since the start of the year, LVMH shares are perfectly stable (-0.2%) over the past 12 months.
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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%).
LVMH 
