United Homes Group stock plunges after Nikki Haley, directors resign
Investing.com - Goldman Sachs has reiterated its Buy rating on L’Oreal SA (EPA:OREP) (OTC:LRLCY) with a price target of EUR430.00, highlighting the company’s strong performance in its fragrance segment.
The fragrance category now represents 14% of L’Oreal’s group sales, up from 9% in FY19, following four years of double-digit growth with a 14% five-year compound annual growth rate since FY19. In the first half of the year, fragrances grew 11% and accounted for more than 40% of L’Oreal’s total sales growth, with the remainder primarily coming from haircare products.
Goldman Sachs notes that L’Oreal has a robust pipeline of product launches planned for the second half of the year, including Prada Paradigme and Miu Miu Miutine, which should support continued momentum in fragrances globally, particularly in the U.S. during the Christmas period.
For Q3, Goldman Sachs forecasts 4.8% organic sales growth, which implies 5.5% underlying growth offset by a negative 70 basis point impact from the Enterprise Resource Planning IT transformation affecting North America. The firm expects 6.1% organic sales growth in Q4, including a positive 110 basis point ERP impact, leading to 4.2% growth for FY25.
Looking ahead to FY26, Goldman Sachs projects 4.7% organic sales growth, assuming a slowdown in Europe and Latin America balanced by strong momentum in SAPMENA-SSA regions and further recovery in the U.S., while maintaining a cautious outlook on China demand with low-single-digit growth forecasted.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.