Deutsche Bank announced on Monday that it had raised its target price for LVMH from €635 to €715, while renewing its buy recommendation on the stock.
In a sector study addressing the outlook for the luxury market, the German bank considers that 2026 is shaping up to be a "decisive" year for the sector, with growth gaps between major brands set to narrow after proving particularly high in recent years.
While many segments are still struggling, Deutsche Bank analysts believe that luxury goods are well positioned to accelerate in 2026, even if they rule out a return to the exceptional pre-Covid growth levels. However, this does not prevent them from anticipating a gradual improvement in activity over the course of the financial year, which is likely to push up valuation multiples.
While LVMH and Burberry remain its favorite stocks, the financial institution says it has added Switzerland's Richemont to the list due to its better-than-expected growth, while Kering and Moncler remain its least favored stocks due to the risk of disappointment associated with their financial results.
LVMH Moët Hennessy Louis Vuitton SE is the world leader in luxury products. Net sales break down by family of products as follows:
- fashion and leather items (48.5%): brands such as Louis Vuitton, Kenzo, Celine, Fendi, Marc Jacobs, Givenchy, etc.;
- watches and jewels (12.5%): Bulgari, TAG Heuer, Zenith, Hublot, Chaumet, Fred brands, Tiffany, etc.;
- perfumes and cosmetics products (9.9%): perfumes (Christian Dior, Guerlain, Loewe, Kenzo brands, etc.), makeup products (Make Up For Ever, Guerlain, Acqua di Parma, etc.), etc.;
- wines and spirits (6.9%): champagnes (Moët & Chandon, Mercier, Veuve Clicquot Ponsardin, Dom Pérignon brands, etc.; No. 1 worldwide), wines (Cape Mentelle, Château D'Yquem, etc.), cognacs (mainly Hennessy; No. 1 worldwide), whisky (mainly Glenmorangie), etc.;
The remaining net sales (22.2%) are from selective distribution through the Sephora, DFS, Miami Cruiseline chains and Le Bon Marché and La Samaritaine department stores.
At the end of 2024, products are marketed via a network of 6,307 outlets located throughout the world.
Net sales are distributed geographically as follows: France (8.3%), Europe (17.2%), Japan (8.8%), Asia (27.5%), the United States (25.4%) and other (12.8%).
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