Analyst Rogerio Fujimori of Stifel Nicolaus maintained a Buy rating on L’Oreal (0NZM – Research Report), retaining the price target of €410.00.
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Rogerio Fujimori has given his Buy rating due to a combination of factors that suggest a promising outlook for L’Oréal despite a recent dip in performance. Although the company’s like-for-like growth in the fourth quarter of 2024 was below market expectations, the operating margin remained steady at 20.0%, indicating robust margin management. The company also demonstrated a balanced contribution from volume and price-mix to its growth, which is a positive sign for its operational health.
L’Oréal’s strategic ‘beauty stimulus plan’ is expected to drive progressive acceleration in like-for-like growth throughout 2025, enhancing its market share. This optimism is shared by the market consensus, which forecasts L’Oréal’s growth to surpass the broader beauty market. Additionally, the reassuring margin performance across its divisions and an 8.6% increase in net cash flow further support the Buy rating, suggesting that L’Oréal is well-positioned for future success.
According to TipRanks, Fujimori is a 4-star analyst with an average return of 5.5% and a 57.97% success rate.
In another report released today, Goldman Sachs also maintained a Buy rating on the stock with a €430.00 price target.