Investing.com – In a note published on Monday, RBC analysts noted that shares of LVMH Moet Hennessy Louis Vuitton SE (EPA:) have been underperforming recently, indicating a potential buying opportunity.
In particular, they noted that over the past three months, shares have fallen by 18%, while the MSCI Europe index has risen by 2%.
Analysts stressed they were “cautiously optimistic” about the second half of this year, noting a potential increase in earnings due to the low comparison base, which could be well received by investors.
They also mentioned that they have been wary of the luxury sector in recent months, but consider LVMH an exception due to its competitive advantages.
In this context, they reiterated their “outperform” rating on LVMH shares, with the price target adjusted from €905 to €900 due to a 2% cut in 2024 EBIT guidance, implying an upside of 27% from Friday’s closing price . .
Finally, it’s worth noting that many other analysts are bullish on LVMH stock. According to data available on InvestingPro, the average target price for the stock is €875.58, indicating an upside potential of 21.15%.
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