🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

Morgan Stanley lifts LVMH shares target on strong fashion & leather sales outlook

EditorEmilio Ghigini
Published 2024/03/14, 10:56
© Reuters.
LVMUY
-

On Thursday, Morgan Stanley demonstrated confidence in the performance of LVMH (EPA:LVMH) Moet Hennessy Louis Vuitton SE (MC:FP) (OTC: OTC:LVMUY) by increasing its share price target from EUR790.00 to EUR850.00, while maintaining an Equalweight rating on the stock. The adjustment reflects a more optimistic view of the company's sales trajectory, particularly within its crucial Fashion & Leather Goods division.

The revised price target comes after a reassessment of LVMH's potential growth, with projections for the Group's Organic Sales Growth in the first quarter of 2024 being revised upward from +2.9% to +4.5%. This figure surpasses the Value Added consensus, which stands at +3.5%. The analyst pointed to a more encouraging trend for LVMH's key Fashion & Leather Goods division, which includes prestigious brands such as Vuitton, Dior, Celine, and Fendi, as a primary reason for the adjustment.

Initially, there was an expectation of a year-over-year sales contraction for LVMH in the first quarter of 2024. However, current estimates suggest a slight expansion, with less impact anticipated from Western consumers compared to the fourth quarter of 2023. This shift in expectations is seen as a positive sign for LVMH's business outlook.

Despite concerns from some investors that LVMH may not be outperforming the rest of the Luxury Goods sector and could potentially be underperforming compared to some peers, the updated forecast of a +2% OSG year-over-year in the first quarter of 2024 is viewed as a move that mitigates risk for the company's equity narrative. This revised estimate aligns with the broader reassessment of LVMH's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.