Can LVMH reveal the value on the stock market after this morning’s dive? The action of the world leader in luxury has been heavily sanctioned (-8% for the stock market course) by financial analysts and its shareholders, LVMH having published in the first quarter of the first quarter. So much so that LVMH has just been dethroned by Hermès (which displays a market capitalization of 248 billion euros, against 244 billion for the world number one luxury by turnover) as the main value of the CAC 40!
The LVMH turnover achieved in the first quarter (-3% excluding acquisitions and impact of exchange rate variations) was “Well worse than expected“, Denounces UBS, which has just lowered its profit estimates per share per share for 2025 and the following two years and warned that the revisions in decline in the forecasts of results from the world leader in luxury were not yet behind. The start of 2025 was “difficile“Adds the Jefferies broker. The fashion and leather goods division (-5%) suffered particularly in the first quarter.
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Does LVMH action have a potential to increase on the Paris Stock Exchange?
The weakness of luxury items for Chinese tourists in Japan has weighed on LVMH. In addition, the underperformances of the Hennessy brand as well as those of Sephora in the United States have disappointed financial analysts, according to the Stifel broker. The American market becomes “more difficultFor some LVMH divisions, adds Oddo BHF. In the wake of the weakenings of their estimates of future profits for LVMH, financial analysts logically revised their copy and therefore saved their course objectives (just price estimated for LVMH action, according to financial analysis).
The Swiss bank UBS brought back its lens of courses on LVMH from 650 to 569 euros, the Jefferies broker lowered his from 670 to 510 euros. Finally, Oddo BHF brought back its target from 702 to 606 euros. On the basis of the course objectives of these three financial establishments, the right average price of the action (which raises 490 euros, at a time when these lines are written) is 562 euros, or still a potential for the theoretical increase of almost 15% on the stock exchange for LVMH, taking into account the course dive on Tuesday.
What prospects for LVMH?
After a first quarter of 2025 “unusual“, On a background of the environment”unobtice“For the luxury sector, Oddo BHF fears that the current year is for LVMH”A new transition exercise». And there is a net hazard on the margins expected for LVMH in the first half, underlines Jefferies. While the wines and spirits and fashion and leather goods divisions, the most profitable of LVMH, were particularly abused, the profitability of LVMH will be “under pressure“Adds Morningstar. It must be said that the demand for luxury articles from the least affluent customers is currently struggling, the Donald Trump offensive on customs duties leading to household confidence (and economic growth) and their savings placed on the stock market (which induces a feeling of impoverishment).
In the end, 2025 could be a new year “difficult for the luxury sector“Warns Morningstar, but Oddo BHF wants to be reassuring, believing to perceive a notable rebound potential by a year. In addition, the history of luxury encourages optimism rather, since in 30 years, slowdowns of the sector lasted relatively a long time (only one to two years) and its average growth has been faster than that of the gross domestic product (GDP), argues Morningstar.
Bourse: LVMH, Hermès… Are CAC 40 family businesses good investments?
LVMH has massive advantages and should resist the crisis better than other luxury players
LVMH benefits from massive advantages, between its leadership global, sound pricing power (its ability to impose its selling prices on customers) as well as its major brands, among the “stronger in the sectorAccording to Morningstar, for whom the number one of luxury should resist the crisis better than most of its competitors. At the current course levels, the LVMH action is considered inexpensive by Morningstar, who finds it “attractive for a long -term equity investor».
Momentum readers, the daily premium investment letter of Capital on the scholarship, were able to buy and sell the LVMH action to good timings (with massive gains in the key) In recent years, including in recent weeks. Last week, for example, Momentum had properly anticipated a short -term rebound in the action during the low point of April 9, but warned its readers of the high risk of relapse of LVMH on the stock market once the action has come up to 535 euros. A risk that has materialized in a beautiful way today. Buy and sell your actions at the right time with Momentum. By choosing an annual subscription, 5 months are offered. To take advantage of it, simply click on the link inserted below.
