(News Bulletin 247) – The company with 75 houses has entered the top 10 of the largest market capitalizations in the world. This is thanks to the pursuit of dizzying growth and its very attractive economic model.

It seemed inevitable given its irresistible rise in the stock market. The luxury group LVMH, the first European and French capitalization, has entered the top 10 of the largest market capitalizations (the total market value of a company’s shares) in the world, according to a ranking carried out by Bloomberg on Thursday evening.

The capitalization of the company led by Bernard Arnault amounts to 447.375 billion euros, the group evolving this Friday on historic highs, up 0.8% at the start of the afternoon, after gaining 5, 7% the day before. Reported in dollars, this capitalization rises to 494 billion dollars, against 490 billion dollars for the American health group UnitedHealthGroup, which LVMH exceeded by a short head.

Still potential to climb?

Remember that this ranking is dominated by Apple (2.620 billion dollars), ahead of Microsoft (2.160 billion) and the Saudi oil major Saudi Aramco (1.925 billion dollars). LVMH still has some way to go to climb higher in the hierarchy and overtake Meta, Facebook’s parent company, with its $571 billion market capitalization.

Nevertheless, many analysts believe that the tricolor luxury group has potential. The group’s growth, of 17% over one year in the first quarter, should still benefit from an acceleration of the recovery in China from the second quarter. “The situation for the second quarter seems promising, all the leading indicators concerning Chinese customers being green”, underlines Stifel who raised his price target to 975 euros, against 895 euros previously.

“We believe LVMH is too cheap given the appeal of the luxury goods sector, its strong portfolio of brands and its top-notch execution. This creates a virtuous cycle of outperformance in the luxury sector as well as compared to other companies specializing in high-quality consumer goods”, judges Bank of America, which has a target of 1,000 euros for the company. This still gives a potential of 12% to the action…