Black Friday Sale! Save huge on InvestingProGet up to 60% off

UBS downgrades LVMH to neutral, cuts target price

EditorPollock Mondal
Published 11/21/2023, 07:14 PM
© Reuters.
FCHI
-
LVMH
-

LVMH (EPA:LVMH) shares experienced a notable decline on the CAC 40 today, following a downgrade by UBS from "buy" to "neutral". The luxury goods giant also saw its target price cut from €829.4 to €770 amid projections of a market share growth slowdown and an anticipated consolidation phase. This adjustment by UBS comes in response to the broader economic uncertainty that could impact LVMH's long-standing record of outperformance.

LVMH, known for its high-end products and dominance in the luxury market, was trading down by 1.1%, marking it as the most significant loser on the CAC 40 and the most actively traded stock of the session. UBS's analysis suggests that LVMH's current stock valuation is "fair," indicating that investors may have already accounted for the company's historical success in their pricing.

The downgrade and revised target price reflect a cautious stance from UBS regarding LVMH's prospects in a challenging economic environment. Despite LVMH's previous market share expansions, UBS now envisions a period where the company may not sustain its exceptional growth trajectory, leading to a more defensive position for its stock. Investors are responding to these new insights, adjusting their positions in light of the potential changes on the horizon for LVMH.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.