LVMH: Morgan Stanley still says 'overweight'
(CercleFinance.com) - Morgan Stanley confirms its "overweight" recommendation on the LVMH share, while cutting its corresponding target price from 475 euros to 440 euros, considering the luxury goods group's share as "a saf(er) port in a storm".
While it believes that the group's sales should drop 17% in organic terms in Q1, one of its worst quarterly performances in the last 20 years, the broker thinks that LVMH will have done better than most of its peers.
"However, the group's relative outperformance might not be as significant in 2Q, given geographic mix (with ~25% of its sales in North America, LVMH has one of the biggest exposures to that market) and category/channel mix," the broker says, however.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.