(AOF) – Barclays raises its recommendation on LVMH from “Online Weighting” to “Overweight” while raising its price target from 825 to 937 euros. The research office justifies this change in recommendation by the optimism displayed for the Fashion & Leather Goods division of the luxury group: “We are raising our estimate of organic growth for the year 2024 from 4 to 6%, which would translate into a total turnover of 44 billion euros. We increase our EBIT to 18 billion euros, a margin of 40.1%.
In addition, Barclays expects group-wide sales of €90 billion for fiscal year 2024, up 5% at constant exchange rates, and adjusted EBIT of €24 billion. , representing an adjusted EBIT margin of 26.3%.
“Although first quarter and second quarter sales could be moderate and appear particularly weak compared to previous years, we do not see fundamental problems in the Fashion & Leather Goods division. And we expect LVMH to return to a rate healthier growth by the second half of 2024”, also explains the design office.
Barclays is confident in LVMH’s ability to defend its margins in the fashion and leather goods sector.
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