L'Oréal: share down as Morgan Stanley takes a pause
(CercleFinance.com) - L'Oréal's share price was down on Monday in Paris, hit by a downgrade from Morgan Stanley, which recommends that investors take a pause after the share's solid performance.
In mid-morning trading, the French cosmetics giant's share was down over 0.5%, one of the biggest fallers in the CAC 40 index, which was up 0.2% at the same time.
In a report published yesterday, analysts at Morgan Stanley believe that L'Oréal remains a good investment within the consumer sector, seeing the stock as a "core" investment with a long-term view.
However, after several years of outperformance, we are waiting for a better opportunity to increase positions, analysts said.
L'Oréal's share price has risen by more than 35% in 2021 and is now trading at all-time highs. In three years, the share price has more than doubled.
As a result, Morgan Stanley analysts are now more cautious about the stock, with a neutral equal weight rating (vs. an "overweight"). They maintain their target price at 435 euros for the share.
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