Jefferies analyst Molly Wylenzek says L’Oreal (LRLCY) sales are “rapidly cooling” after Q3 came in well below expectations with 3.4% like-for-like versus the consensus estimate of 6.0%. The derma division missed by 10 points, while consumer products was also weaker than expected, the analyst tells investors in a research note. The firm believes North Asia continued to disappoint with Mainland China down high-single-digits. With “nervousness” around the sustainability of the company’s beauty growth and the future of China, Jefferies expects the shares to react negatively to the print. It sees further downward revisions to the “stubbornly high” fiscal 2025 expectations. The firm has a Hold rating on the shares with an EUR 365 price target
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Read More on LRLCY:
- L’Oreal’s Q3 sales well below expectations, says Jefferies
- L’Oreal reports Q3 sales EUR 10.28B, up 3.4% like-for-like
- L’Oreal price target raised to EUR 479 from EUR 472 at Barclays
- L’Oreal downgraded to Underweight from Neutral at JPMorgan
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