LVMH stock price target raised to EUR550 by TD Cowen on Dior strength

Published 15/10/2025, 14:08
LVMH stock price target raised to EUR550 by TD Cowen on Dior strength

Investing.com - TD Cowen raised its price target on LVMH (OTC:LVMUY) to EUR550.00 from EUR500.00 on Wednesday, while maintaining a Hold rating on the luxury goods conglomerate. Currently trading at $136.04, InvestingPro analysis suggests the stock is fairly valued, with analyst targets ranging from $129 to $158.

The firm cited Dior’s performance exceeding expectations, with notable strength in makeup and skincare products. TD Cowen highlighted improved performance across all key nationalities, increased product newness, and experiential luxury initiatives including a Miss Dior celebration exhibit in Shanghai and the new Diorigami jewelry collection. This success contributes to LVMH’s impressive 66% gross profit margins, according to InvestingPro data.

LVMH’s Fashion & Leather Goods division showed solid local demand in mainland China and the United States, according to the research note. Management’s "self-help" initiatives focused on creative renewal and retail expansion, including plans to open two new Dior houses in the U.S. and two new houses in Ginza for Tiffany and Louis Vuitton.

TD Cowen projects 5% overall organic growth for LVMH in fiscal year 2026, slightly above the current Street consensus of 4.4%. The firm noted improvement in both Asian and U.S. markets for the luxury retailer.

The U.S. market faces a tougher fourth-quarter comparison due to last year’s post-election demand surge, though overall U.S. sales are still expected to grow 3% in Q4 2024, according to the research note.

In other recent news, LVMH has been the subject of several analyst updates and corporate developments. Goldman Sachs raised its price target for LVMH to €625, maintaining a Buy rating and anticipating a smaller-than-expected decline in the Fashion & Leather division for Q3 2025. Jefferies also adjusted its price target upwards to €470, while keeping a Hold rating, reflecting a 4.4% increase in valuation. HSBC upgraded LVMH from Hold to Buy, raising its price target to €625, citing Dior’s creative potential under Jonathan Anderson’s leadership, with expectations for a rebound starting in Q2 2026.

Additionally, LVMH’s Louis Vuitton brand is facing a data breach investigation in Hong Kong, affecting approximately 419,000 customers. The breach follows a cyberattack in South Korea in June and involves the compromise of sensitive customer information. These developments reflect a mix of positive analyst outlooks and challenges related to data security for the luxury goods company.

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