LVMH stock target raised to €840 by TD Cowen on robust 4Q results

On Wednesday, TD Cowen reaffirmed its positive stance on LVMH (EPA:LVMH) Moet Hennessy Louis Vuitton SE (MC:FP) (OTC: OTC:LVMUY), a luxury goods powerhouse with a market capitalization of $370 billion and impressive gross profit margins of 68.5%, with analyst Oliver Chen increasing the price target to €840 from the previous €800. The firm maintained a Buy rating on the stock, reflecting confidence in the company’s trajectory. According to InvestingPro, the company maintains a "GREAT" financial health score, supported by strong profitability metrics.

Chen highlighted the company’s fourth-quarter performance, which exceeded expectations, particularly noting the strong acceleration in the Watches & Jewelry and Fashion & Leather Goods segments. The double-digit year-to-date growth for both Tiffany and Louis Vuitton was also a point of encouragement for the analyst.

The report mentioned that while some core brands like Dior may require more product innovation to boost cultural relevance, recent collaborations such as LV x Murakami and the Nigo show are seen as positive drivers for the first quarter. The analyst’s outlook was buoyed by the overall luxury sector’s performance, with LVMH and its peers like CFR and BRBY reporting better-than-anticipated results.

The U.S. market was singled out for its standout performance, contributing significantly to the fourth-quarter sales increase, which saw a 3% rise compared to a flat third quarter. The growth in the U.S. was more balanced across product categories in the second half of the year, contrasting with the first half, which was dominated by Sephora’s growth.

Despite luxury stocks trading near or at peak trailing twelve-month multiples, with LVMH currently trading at a P/E ratio of 25.5x, Chen believes that LVMH presents a long-term, high-quality opportunity, thanks to its portfolio of leading luxury brands. The new price target is based on 28 times the firm’s revised fiscal year 2026 earnings per share estimates. This adjustment reflects TD Cowen’s view that LVMH’s stock offers a valuable investment, considering the company’s robust performance and potential for continued success. InvestingPro analysis indicates the stock is currently trading above its Fair Value, with technical indicators suggesting overbought conditions. Subscribers can access 12 additional exclusive ProTips and comprehensive valuation metrics to make more informed investment decisions.

In other recent news, LVMH Moet Hennessy Louis Vuitton SE has been a focal point of financial analysts’ attention due to its recent financial performance. The luxury giant reported a modest 2% beat in its fourth-quarter 2024 group sales, but the earnings before interest and taxes (EBIT) for the second half of 2024 saw an approximate 20% year-over-year decline. Analysts from JPMorgan maintained a neutral rating on LVMH with a price target of EUR650.00, while Citi analysts maintained a Buy rating with a consistent price target of EUR763.00.

TD Cowen raised LVMH’s stock price target to €840, maintaining a Buy rating based on a 28x multiple of the firm’s newly revised fiscal year 2026 earnings per share (EPS) estimates. Morgan Stanley (NYSE:MS) also maintained its Overweight rating on LVMH, accompanied by a steady price target of EUR820.00. 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. These are the recent developments in LVMH’s financial outlook.

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