Sprouts Farmers Market closes $600 million revolving credit facility
On Monday, Berenberg analysts adjusted their outlook on L’Oreal SA (OR:FP) (OTC: LRLCY), lowering the price target to €454 from the previous €502, while maintaining a Buy rating on the stock. Currently trading at $70.25, the stock appears undervalued according to InvestingPro analysis, with broader analyst targets ranging from $88 to $94.40. The decision comes after L’Oreal’s full-year 2024 results, released on February 7, showed mixed performance against market expectations.
L’Oreal’s like-for-like sales growth in the fourth quarter was 2.5%, falling short of the Visible Alpha consensus forecast of 3.9%. The company experienced varied growth rates across its divisions, with Professional Products up by 3.8% versus a 5.3% consensus, Consumer Products slightly better at 2.7% compared to a 1.9% consensus, Luxe at 1% against a 5% consensus, and Dermatological Beauty exceeding expectations at 5% growth compared to a 4.8% consensus. The company maintains impressive gross profit margins of 74.2%, reflecting its strong market position. Get deeper insights into L’Oreal’s financial metrics and 8 additional exclusive ProTips with InvestingPro.
Regionally, L’Oreal’s organic sales growth also presented a mixed picture. Europe saw a growth of 5.2%, just under the 5.4% consensus. North America reported a lower-than-anticipated growth of 1.4%, compared to the expected 4.7%, and North Asia experienced a decline of 3.6%, which was worse than the -2.4% consensus had predicted.
Despite these variations in sales growth, the actual sales for Q4 2024 totaled €11,081 million, surpassing consensus estimates by 2%. The company’s operating profit for the fiscal year 2024 reached €8,688 million, aligning with expectations, and resulted in an operating margin of 20.0%. Moreover, L’Oreal’s adjusted earnings per share (EPS) for FY24 was €12.66, which was 4% higher than the consensus forecast. InvestingPro data shows the company maintains a strong financial health score of GOOD, with robust cash flows and moderate debt levels, indicating some positive aspects amidst a complex performance landscape.
In other recent news, L’Oreal SA has seen adjustments in its outlook from financial analysts. Stifel has revised its price target for the company’s stock down to EUR 395 from EUR 410, maintaining a Buy rating. This change follows L’Oreal’s lower than expected sales growth in the last quarter of 2024, particularly in North America and North Asia. However, the firm noted L’Oreal’s Luxe segment in the United States saw robust sales increases during November and December.
On the other hand, Bernstein SocGen Group has downgraded L’Oreal’s stock rating from Outperform to Market Perform, and adjusted the price target to EUR 380 from EUR 430. The firm anticipates a normalization year for the beauty industry in 2025, following a challenging 2024. Bernstein’s new price target is based on an enterprise value to earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) multiple of 15.0x, slightly reduced from the previous 15.2x.
These are recent developments in the financial analysis of L’Oreal, indicating careful scrutiny from analysts as they navigate shifts in the beauty industry and the company’s performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.