(News Bulletin 247) – The title ended the day in the green benefiting from the positive analysis of Bank of America. The analyst resumed tracking the L’Oréal stock on Wednesday with a buy recommendation and a target of 450 euros, representing an upside potential of 17%.
In a research note, the analyst praises the French cosmetics group’s business ‘mix’, strong online positioning, marketing savvy as well as an ‘unparalleled’ portfolio of brands that should enable it, from its point of view, to accelerate both its market share gains and improve its profitability.
These performances should fuel, in turn, a solid cash flow likely to favor more than five billion euros of mergers and acquisitions (M&A) operations and the redistribution of 10% of the market capitalization in the form of dividends over the course of the year. over the next five years, continues BofA.
The intermediary adds that the reopening of the Chinese economy and the recovery of tourism in Asia could also generate good surprises, while judging that the 20% discount that L’Oréal shares are posting today compared to Estée Lauder is unwarranted given the band’s recent ‘solid execution’.
Copyright (c) 2023 News Bulletin 247. All rights reserved.
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
