Wednesday, Citi analysts maintained a Buy rating on LVMH (EPA:LVMH) (MC:FP) (OTC: LVMUY) stock with a consistent price target of EUR763.00. The firm’s commentary highlighted the recent performance of LVMH’s luxury peers, which have shown significant quarter-over-quarter sales improvements and exceeded expectations. This development has raised the bar for LVMH, which reported a modest 2% beat in its fourth-quarter 2024 group sales and Fashion & Leather sales.
LVMH’s earnings before interest and taxes (EBIT) for the second half of 2024 saw an approximate 20% year-over-year decline, totaling around €8 billion, which fell short of expectations by €1 billion. According to Citi, this drop is not characteristic of LVMH’s historical performance and can be attributed to a mix of significant foreign exchange headwinds, one-off gross margin and operating expenses, and operational expenditure deleverage in the weaker second-half performance within the Wine & Spirits and Fashion & Leather segments.
Despite these challenges, LVMH demonstrated better-than-expected operational expense control. Citi anticipates a low single-digit percentage increase in total operational expenses for the full year 2025. Consequently, the consensus forecasts for LVMH’s 2025 group sales of €88.6 billion and EBIT of €21.7 billion are expected to be revised downward by low to mid-single-digit percentages, respectively.
In their analysis, Citi also considered the reported double-digit growth in January for Louis Vuitton and Tiffany. However, they advise caution when interpreting these figures due to factors such as the Murakami launch and the earlier timing of the Chinese New Year. LVMH’s stock is currently trading at approximately 26 times its projected calendar year 2025 earnings, with a P/E ratio of 27.14x. According to InvestingPro Fair Value analysis, the stock appears slightly overvalued at current levels, despite showing strong YTD returns of 18.7%. For more insights on overvalued stocks, visit the Most Overvalued Stocks list.
In other recent news, LVMH Moet Hennessy Louis Vuitton SE (OTC:LVMUY) has been the focus of several financial analysts. The luxury goods company recently reported its fourth-quarter sales, showing a modest 2% beat against consensus sales estimates, with organic growth reported at +1%. Despite mixed results in different regions, Morgan Stanley (NYSE:MS) maintained its Overweight rating on LVMH, accompanied by a steady price target of EUR820.00.
TD Cowen raised LVMH’s stock price target to €840, based on a 28x multiple of the firm’s newly revised fiscal year 2026 earnings per share (EPS) estimates, maintaining a Buy rating. Jefferies raised the company’s stock price target to €670 while maintaining a hold rating. BofA Securities upgraded LVMH’s stock rating to buy and increased its target to €735, based on improving trends in luxury demand, controlled cost growth, and a shift from foreign exchange headwinds to tailwinds.
Berenberg initiated coverage of LVMH with a buy rating, citing the company’s robust business model and growth resilience. However, the company’s third-quarter revenue fell short of expectations, marking a 5% miss and an 8% decline in profit from recurring operations, totaling €10.7 billion. Despite this, TD Cowen reaffirmed its buy rating on LVMH, emphasizing the stock’s favorable price-to-earnings ratio and free cash flow yield. These are the recent developments in LVMH’s financial outlook.
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