JPMorgan analyst sees upside in LVMH shares despite sales miss

October 11, 2023 08:26 AM PDT | By Invezz

JPMorgan analyst sees upside in LVMH shares despite sales miss — Image source: Invezz

Why else are LVMH shares down today?

Investors were particularly taken aback on the earnings call as Jean-Jacques Guiony – the Chief Financial Officer of the luxury fashion company was not clear on what to expect from China moving forward.

The lack of clarity on that front was a disappointment as LVMH relies meaningfully on the largest Asian economy that’s currently in a slowdown.

Nonetheless, it’s not that the weakness was restricted only to China. LVMH saw its sales growth crash in Europe as well from 19% in Q2 to 7.0% only in the third quarter. Its U.S. sales also remained roughly flat only on a quarter-over-quarter basis.

LVMH shares are down 5.0% on Wednesday.

Mr. Arnault seems to be bullish on his company $LVMH pic.twitter.com/b8C69UPGv7
— Invest In Assets | Stock Market Investing 📈 (@InvestInAssets) October 11, 2023

JPMorgan analyst remains bullish on LVMH shares

LVMH reported €20 billion ($21 billion) in total revenue for the third quarter today – down from €21 billion in the prior quarter and about €600 million versus the analysts’ forecast.

Note that the French conglomerate has a history of beating consensus estimates. Still, Chiara Battistini – a JPMorgan analyst told clients in a research note on Wednesday:

LVMH in our view remains … among the names that should navigate this ongoing volatility relatively better.

She did, however, acknowledged the near-term challenges and trimmed her price target on LVMH shares this morning to €835 – which still represents a more than 20% upside from here. Bernard Arnault – the Chief Executive of LVMH is currently being investigated (read more).

LVMH
The correction has already been done these last few weeks. Do not be fooled. If it opened -5%/-6% or below take the opportunity. Numbers are actually good and they will be even better in the next quarters. #lvmh #cac #cac40 #luxury #action #stock #LouisVuitton pic.twitter.com/102mDnbx6D
— MakeGrandDuchyGreatAgain (@makeDucgr8again) October 11, 2023

The post JPMorgan analyst sees upside in LVMH shares despite sales miss appeared first on Invezz

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