L'Oréal: Oddo hails 'a comeback' - raises target price
(CercleFinance.com) - Despite an 8.
6% drop in sales over the first nine months of 2020, Oddo believes that L'Oréal has made a very sound recovery in the third quarter, with organic growth of +1.6%, even though this was eroded by a currency effect (-4.6%).
This was not at all a foregone conclusion, the analyst says. It was difficult to pick up from -18.8% in Q2 to return to growth.
The group decided to counter-attack from the summer with launches, relaunches, marketing support and support for retailers. The group has increased confidence regarding the second half of the year, the broker judges.
Oddo nevertheless remains "neutral" on the share, although has raised its target price for the share to 278 euros, compared with 271 euros previously (current price: 290 euros, +1.7%).
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