(AOF) – Berenberg changed its recommendation on L’Oréal shares from Hold to Buy, while increasing its price target to 530 euros (compared to 436 euros previously). “Our new 12-month price target implies an upside potential of 18%. Its investment thesis is based on average organic sales growth for L’Oréal of 6.7% in 2025-2030, the highest among companies in the household and personal care products sector followed by the analyst, and on an average shareholder return of 11.3% (EPS growth and dividend yield).
According to Berenberg, these results build on the company’s attractive positioning, which generates approximately 50% of its revenue in four of the fastest-growing commodity categories.
In addition, L’Oréal’s business model, which is highly cash-generating (with 4.5 billion euros of average free cash flow after dividend in 2025-2030), offers significant possibilities for deploying liquidity (buybacks shares and/or mergers and acquisitions).
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