L'Oréal: stock resists with defensive and cyclical profile
(CercleFinance.com) - On Tuesday L'Oréal shares continue to benefit from its status as a defensive stock in a market tht is still held back by fears surrounding the health of the US banking sector following the SVB bankruptcy.
The stock has only fallen by around 0.7% over the last five sessions, while the CAC has lost more than 4%.
In a note published yesterday, Deutsche Bank analysts said they had made the French cosmetics giant's stock a buy in the short term.
The broker explains that data shows an acceleration of the group's business within distribution networks, an indicator that usually precedes sound stock performance over a four-month horizon, it says.
While it acknowledges that the stock's current valuation is high relative to its historical average, Deutsche Bank expects the quality of its results to limit any fall in the near term.
Copyright (c) 2023 CercleFinance.com. All rights reserved.
The stock has only fallen by around 0.7% over the last five sessions, while the CAC has lost more than 4%.
In a note published yesterday, Deutsche Bank analysts said they had made the French cosmetics giant's stock a buy in the short term.
The broker explains that data shows an acceleration of the group's business within distribution networks, an indicator that usually precedes sound stock performance over a four-month horizon, it says.
While it acknowledges that the stock's current valuation is high relative to its historical average, Deutsche Bank expects the quality of its results to limit any fall in the near term.
Copyright (c) 2023 CercleFinance.com. All rights reserved.