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Investing.com - Jefferies has increased its price target on LVMH (EPA:MC) stock to EUR470.00 from EUR450.00 while maintaining a Hold rating on the luxury goods company. The company, with a market capitalization of $287.7 billion and impressive gross profit margins of 66%, remains a dominant force in the luxury goods sector. According to InvestingPro analysis, LVMH is currently trading below its Fair Value.
The firm’s adjustment represents a 4.4% increase in its valuation target for the French luxury conglomerate, which trades on the Paris Stock Exchange and over-the-counter in the U.S. as (OTC:LVMUY).
Despite the higher price target, Jefferies expressed caution about the luxury sector’s near-term prospects, noting that any improvements in the third quarter would likely represent only temporary relief after cycling through difficult 2024 comparisons.
The investment bank trimmed its estimates by approximately 1% at the revenue level, translating to roughly 6% at the operating profit (EBIT) level, and suggested that LVMH’s current valuation at about 23 times 2026 projected earnings doesn’t provide adequate protection against potential weakness in the U.S. market.
Jefferies also indicated that benefits from operational expense management and market share improvements at LVMH are unlikely to materialize until the latter part of 2026.
In other recent news, LVMH has been under the spotlight with several key developments. HSBC upgraded LVMH stock from Hold to Buy, raising the price target to EUR625.00, driven by expectations for Dior’s creative potential under Jonathan Anderson’s leadership. Meanwhile, TD Cowen maintained its Hold rating on LVMH, highlighting challenges in the Chinese market and potential growth stagnation in the Fashion & Leather Goods division until 2026. Morgan Stanley also adjusted its outlook, lowering its price target to EUR510.00 due to anticipated declining sales in the Fashion & Leather Goods sector, projecting a 7.5% year-over-year decline in organic sales growth for the second quarter. Additionally, Louis Vuitton is facing a data breach investigation in Hong Kong after a cyberattack affected around 419,000 customers, compromising sensitive customer information. This incident follows a similar cyberattack on the brand in South Korea in June. These recent developments have drawn significant attention to LVMH’s operational and strategic directions.
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