L'Oréal: Berenberg downgrades to 'sell'
(CercleFinance.com) - An analyst at Berenberg this morning said that he is downgrading his rating on the L'Oreal stock from "Hold" to "Sell.
"
Although nudging up his 12-month target price for the share from 181 euros to 183 euros, this suggests downside potential of around 15%.
The L'Oréal share has reached a 5-year peak, having increased by 15% since the start of 2018, while there has not really been much change in the group's earnings outlook.
The analyst also estimates that the group's organic growth could slow to 5% next year, that there could only be a slight improvement in the group's margin and its operating profit may only rise by 7%.
Copyright (c) 2018 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.
"
Although nudging up his 12-month target price for the share from 181 euros to 183 euros, this suggests downside potential of around 15%.
The L'Oréal share has reached a 5-year peak, having increased by 15% since the start of 2018, while there has not really been much change in the group's earnings outlook.
The analyst also estimates that the group's organic growth could slow to 5% next year, that there could only be a slight improvement in the group's margin and its operating profit may only rise by 7%.
Copyright (c) 2018 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.