L'Oréal: Oddo BHF raises target price

(CercleFinance.com) - Maintaining its "neutral" rating on L'Oreal, Oddo BHF has nudged up its target price for the share to 193 euros the day after the cosmetics giant published its 2018 results, which the broker believes are very good quality.


The broker highlights "a very nice end of the year" (organic growth of +7.7% in Q4), and an increase in its operating margin driven by an improvement in its gross margin, some of which has been reinvested in marketing.

However, note that EPS came in 0.6% below the consensus over the fiscal year, due to reduced growth in its operating margin and that this publication, while of excellent quality, will not change forecasts for 2019, the analyst says.



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