LVMH downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley downgraded LVMH (LVMUY) to Equal Weight from Overweight with a price target of EUR 590, down from EUR 740. The company is seeing a softer start to the year than expected as all five of its divisions reported weaker top line than expected by the market, with the key Fashion & Leather Goods division posting a “double dip” in sales in Q1, the analyst tells investors in a research note. The key delta explaining the sequential deterioration from down 1% y/y in Q4 to down 5% in Q1 was the greater contraction in Chinese demand worldwide, though spending by U.S. nationals also softened sequentially, the firm adds.