(CercleFinance.com) – L’Oréal shares recorded one of the biggest increases in the CAC 40 index on Tuesday on the Paris Stock Exchange following an increase in advice from Morgan Stanley, which judges the French cosmetics group to be well positioned to gain market share.
In a study devoted to the European consumer goods sector, analysts at the American investment bank indicate that they have moved to ‘overweight’ on value, compared to ‘online weighting’ until now, with an unchanged price target of 450 euros.
The Wall Street firm justifies its increase by the ‘superior’ growth recorded by the French makeup giant, by its low exposure to white brands and above all by its ability to gain market share.
In a beauty market considered ‘very fragmented’, which sees the smaller players in the sector struggling for survival, highly capitalized groups such as L’Oréal can more easily invest in innovation and marketing, and thus accelerate their market share gains, explains Morgan Stanley.
L’Oréal shares are currently gaining 0.7% and are one of the best performers in a balanced CAC 40 index. Its gains since the start of the year amount to more than 25%.
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