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JPMorgan has confirmed its positive recommendation and its share price target of 320 euros for L’Oréal. The group has indeed ended a difficult year on a very good note, observes the American bank.
The world’s leading cosmetics company announced solid sales and margins with a particularly impressive second half of the year. Organic sales growth came to 4.8%, while the broker was expecting +2.3% thanks to the strength of Luxury Goods (+4.4%), Active Cosmetics (+30.7%) and the resilience of Professional Products (+6.5%) in a context marked by health restrictions.
The design office emphasizes that L’Oréal continues to perform where it should: in China (+43%), in e-commerce (+63%) and in skincare.
This performance enabled the margin to increase by 15 basis points in the second half of the year.
In terms of outlook, L’Oréal is optimistic for 2021.
CEO Jean-Paul Agon is confident. “I am convinced that when we come out of the crisis, it will be like in the 1920s, the ‘Roaring Twenties’. After years of anguish, there will be a feeling of freedom, a return to partying, to the desire to go out and socialize, to perfume and make-up“, he says.
For JPMorgan, in a context of restrictions, this publication confirms the group’s ability to activate all the levers, with its advantage in the digital world that allows it to gain market share and increase its profits.
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Featured Photo : © L’Oréal[/vc_column_text][/vc_column][/vc_row]
