(CercleFinance.com) – Berenberg announced on Tuesday that it had raised its advice on L’Oréal shares from ‘hold’ to ‘buy’, with a price target raised from 436 to 530 euros, i.e. an upside potential of 18%.
In a research note, the intermediary supports its favorable recommendation with the prospect of average annual organic growth of 6.7% over the period 2025-2030, which would make it the best performance of stocks linked to current consumption including he ensures follow-up.
The analyst also says he expects an average return to shareholders of 11.3% for the next six years, taking into account both earnings per share (EPS) growth and dividend yield.
Finally, Berenberg believes that the highly cash-generating business model implemented by the cosmetics group suggests future share buybacks, or even possible mergers and acquisitions (M&A).
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