- We review L'Oréal after shares hit a new all-time high on Thursday; they have now gained 20% since our initial Buy rating in March.
- The global beauty market was down only 6% in Q3, recovering from its 13-14% decline in H1; L'Oréal outperformed with a 1.6% sales growth.
- L'Oréal sales have been benefiting from resilience in some categories, e-commerce, re-openings, China and operational improvements.
- While there are uncertainties around COVID-19 in Q4, L'Oréal is targeting a positive like-for-like sales growth and a “handsome” profit in H2.
- At €299.90, shares pay a 1.3% Dividend Yield and will likely deliver a high-single-digit annualized return, attractive for such a quality asset.
For further details see:
L'Oréal: Unique Quality Asset Hitting Another All-Time High