LVMH gained nearly 0.6% at 2:45 p.m., in a Paris market down 0.5%.

In this context, Oddo BHF reaffirms its "outperform" opinion on LVMH with a target price raised from €585 to €695, noting that the stock "is trading at a 2028 PE of less than 20 times, which suggests significant upside potential in the medium term."

Although it is only moderately raising its earnings forecasts for 2025 and 2026 at this stage, maintaining a rather cautious sector scenario, the research firm has adopted a more positive view of the medium/long-term outlook for the French luxury goods giant.

In terms of figures, Oddo BHF has raised its EBIT estimate for 2028 by 5%, increased its long-term average growth assumption from 6.5% to 7%, and raised its normative EBIT margin to 25.6%.

This more favorable outlook is based on increased confidence in the group's position in soft luxury, a greater contribution to future earnings growth from Bulgari and Tiffany, and restructuring efforts in wines and spirits.

For its part, 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.