(Boursier.com) — L’Oreal returns to 410 euros on the Paris market this Monday, while Barclays ‘overweights’ the file with a target reduced from 467 to 462 euros. Berenberg had also increased its recommendation on the value to ‘buy’ by targeting a price of 530 euros. The broker believes that L’Oréal has the opportunity to generate industry-leading organic growth and shareholder returns. The analyst anticipates average organic growth of 6.7% over 2025-2030, the highest within its sector coverage, and an average return of 11.3%. He believes the company is well positioned and offers best execution in its category. Remember that the group published an increase of 6.9% in its sales in the fourth quarter of 2023, a slower progression than in the previous quarter, the “travel retail” activity continuing to feel the effects of the new regulations on the parallel resale market in China.
L’Oréal’s operating margin for 2023 ultimately stood at 19.8%, in line with market expectations, while turnover stood at 41.18 billion euros (+ 7.6% as published and +11% as comparable), which corresponds to further outperformance of a still dynamic global beauty market. Operating profit stood at €8,143.3 million, with net profit per share at €12.08, up +7.3%.
The proposed dividend is 6.60 euros, an increase of 10%. Operating cash flow stood at 6.1 billion euros, up 23.9%.
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