(Boursier.com) — L’Oreal fell 1.5% to 388 euros this Monday, penalized by an analyst note and new sales in the luxury sector. Sabadell thus remains a seller on the file, with an objective adjusted to 425 euros. Deutsche Bank had already downgraded the title of the world’s number one cosmetics company to ‘sale’ recently, while reducing its target from 385 to 350 euros. “L’Oréal is in many ways a unique company and, as such, we do not take the adoption of a more negative stance lightly,” said the broker.
The downside risk to valuation multiples posed by a slowdown in China and dermatological beauty, as well as macroeconomic concerns, is now considered “considerable”, according to the DB.
The next quantified meeting is set for September 30 (after the market close) with the announcement of Q3 turnover.
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