(News Bulletin 247) – Oddo believes that the acquisition of the Aësop brand will undeniably enable L’Oréal to strengthen its operational footprint in Beauty by adding a skincare brand positioned in the premium segment with a distribution network exclusive on all continents (except Africa).

Following this operation, Oddo confirms its Neutral advice on the stock with a target of €346.

‘ According to the press release, the EV of Aësop is 2525 ME and the turnover reached 537 ME in 2022, i.e. an EV/RE22 of 4.7x. The group gives no indication of the level of operating margin. But if we assume that it is between 20% and 25%, that would bring out an EV/EBITA22e between 19x and 23x’ specifies Oddo.

“The fact remains that this multiple remains high and can only be justified by growth synergies. We believe that China should be the first lever of synergies since the Aësop brand has only been present there since 2022 with the opening of a first point of sale and that L’Oréal has a significant level of critical size in China (c.20% of sales)’ adds the analyst.

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