Market slowdown has arrived at L’Oreal, says Jefferies

Jefferies says that following the “mixed messages” on the state of the global beauty market with Q1 sales, the slowdown being experienced by some seems to have arrived for L’Oreal. The firm understands the company downgraded market growth expectations to 4.5% for fiscal 2024 from 5%-plus. It sees the “need for a rethink of lofty market growth expectations,” not just in the short-term, given the downside risk to consensus growth estimates and the stock’s premium valuation. Jefferies keeps an Underperform rating on L’Oreal with an EUR 362 price target.