French luxury products company LVMH Moët Hennessy Louis Vuitton, or LVMH (FR:MC) (LVMUY), is drawing fresh support from Wall Street ahead of its Q3 results next month. Notably, analyst Louise Singlehurst at Goldman Sachs raised her price target on LVMH from €600 to €625 while keeping her Buy rating.
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LVMH is a European fashion house known for its iconic luxury brands like Dior, Louis Vuitton, Sephora, Fendi, Bulgari, and more. The company is primarily listed on the Euronext Paris exchange but also trades over-the-counter (OTC) in the U.S.
Goldman Sachs Says Worst Is Over for LVMH
Singlehurst is confident that LVMH’s upcoming October quarterly results will show that the worst is over for its flagship Fashion & Leather Goods division, potentially signaling a turning point for the business.
For context, sales in the Fashion & Leather Goods division fell 9% at constant exchange rates in Q2, the steepest decline across all LVMH business segments. The drop reflected ongoing weak demand for luxury products amid rising prices and economic uncertainty. For Q3, Goldman expects a smaller decline of around 2%, slightly better than the market’s average forecast of a 3% drop.
Singlehurst credits the expected turnaround to an easier year-over-year comparison and a rebound in Chinese consumer demand. She also highlights LVMH’s strategic investments during the slowdown, such as the LV Beauté launch, its Formula 1 collaboration, and innovative retail concepts. These moves could attract more visitors and boost sales.
Is LVMH Stock a Good Buy?
Overall, MC stock has received a Moderate Buy rating on TipRanks, backed by a total of 18 recommendations from analysts. It includes nine Buys and nine Holds assigned in the last three months. The LVMH share price target is €555.38, which is 9.6% higher than the current trading level.
