(News Bulletin 247) – The title L’Oréal continues to benefit Tuesday from its status as a defensive value in a market still hampered by fears surrounding the health of the American banking sector following the bankruptcy of SVB.
Around 11:45 a.m., the stock rose by 0.2%, while at the same time the CAC 40 edged up 0.1% and the STOXX index for the European non-essential consumer sector fell by around 1%.
The value only shows a decline of around 0.7% over the last five sessions, while the CAC has lost more than 4%.
In a research note published yesterday, Deutsche Bank analysts say they have made the title of the French cosmetics giant an investment idea for purchase in the short term.
The research department explains that the data show an acceleration of the group’s activity within the distribution networks, an indicator which usually precedes a good performance of the stock price on a horizon of four months, according to him.
While it recognizes that the stock’s current valuation is high relative to its historical average, Deutsche Bank expects the quality of its results to limit any potential short-term devaluation.
‘From a historical point of view, the stock has outperformed the market during previous episodes of recession in the United States and has an option which could allow it to accelerate its growth thanks to its exposure to China and structural growth linked to its economic model if the macroeconomic environment were to continue to prove more resilient than expected,” he concludes.
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.
