LVMH: Stifel downgrades to Hold

(CercleFinance.com) - On Wednesday Stifel downgraded LVMH shares from "buy" to "hold", while raising its target price for them from E680 to E710.


The broker justifies this by the contrast between the 20% upturn in the share price since its November lows and the lack of upward revision of earnings forecasts by the market.

The analyst also mentions the widening gap between the organic growth posted by the French group's fashion and leather goods activities and those of other luxury specialists it covers.

In his opinion, this gap should remain 'significant' in 2025.

And while he notes that the buzz surrounding the Louis Vuitton brand remained solid in January, Stifel points out that online searches for Dior, Céline and Fendi are more disappointing, as these labels are currently going through periods of 'transition'.

The professional also says he expects a "transitional" year for the cognac division, which is seeing a new management team installed, while the scale of capex required by the jewelry businesses should limit performance, he concludes.


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