(Boursier.com) — In a stable market this Friday, L’Oreal increased by 1% to 434 euros and is moving back on historical records, the last peaks dating from the beginning of 2022. The world number one in cosmetics had a good start to 2023 with a turnover of 10.38 billion euros, up 13% like-for-like (+14.6% as reported). The market consensus was counting on internal growth limited to +8.1%. Sales in Europe and North America rose 16% and 16.6% respectively, with the company highlighting the strong performance of its consumer products, as well as its dermatological beauty division. The management remains confident in its ability to once again outperform the market and to achieve, in 2023, “a new year of growth in turnover and results”.
Among the latest brokerage reviews, Berenberg raised its target price from 378 to 412 euros, while AlphaValue highlighted the strong demand for make-up and dermo-cosmetics in North America, South Asia and America. Latin America, offsetting the decline in China at the start of the year. “A full recovery in beauty product consumption in China and a gradual recovery in Chinese travel spending will further boost the group’s revenue for the remainder of the year,” the analyst said.
Oddo BHF meanwhile speaks of a “very strong start to the year which leads us to anticipate 10% organic growth in 2023 but only +5% EPS”. ‘Neutral’ on the title, the analyst raised its target from 346 to 387 euros. Finally, Deutsche Bank raised its target from 410 to 425 euros (‘keep’) and HSBC revalued the file from 259 to 386 euros.
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