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Wise investor
@wise_investor · Jan 17

💼 LVMH: A luxury investment with growth potential? ✨
Bank of America comes up with a fresh analysis, on LVMH stock $MC$MC.PA. 🔍 After a challenging period for the luxury sector, BofA upgrades LVMH stock to a "Buy" rating and ranks it among its top investment ideas for the European market. In addition, the share price target has been raised to €735/$755 📈.

The shares responded by rising by more than 7%.

🛍 Improving trends:
Despite a difficult year LVMH has seen a recovery since the third quarter. Analysts expect modest revenue growth in the year 2025supported by early signs of rising US demand and possible economic stimulus in China.

👛 Innovation and new collections:
The Company has a strategic focus on innovation and revitalizing popular product lines. For example, the Murakami for the brand Louis Vuitton is already a huge success in pre-sales. The new products combine affordability with prestige, which strengthens the brand's appeal to different target groups.

💰 Cost control:
LVMH Plans to have a new product line in place by the end of the year. 2025 to keep cost growth very low. A stable advertising budget, lower rents in China and the benefits of a strong US dollar should help improve margins.

Key growth drivers:
Exchange rate changes: Favor the company's profitability, which could benefit from favorable currency markets.

Stock valuation: LVMH currently trades at a P/E ratio of 23 times earnings expected in 2025.

Luxury market as a whole: While the luxury segment has experienced a downturn, it is also showing its resilience. LVMH' s recovery may signal broader growth in the sector.

According to analysts, the cycle of declining profitability LVMH is coming to an end. A period is coming when investor and consumer confidence could improve, opening the door for valuation growth. At the same time, the company has the advantage of a combination of innovative strategy and tight cost control, creating a solid foundation for future expansion.

LVMH for me, represents an interesting opportunity for long-term investors who believe in the resilience of the luxury market. If the growth trend is sustained, this stock would be worth considering. 🌟

What do you think about the future of LVMH and the luxury segment?

BC
Bill Combs @billcombs Jan 23

I have the stock in my portfolio and will hold it. Things have been a bit worse now, but I believe that will change and luxury goods will be in demand again.

WI
Wise investor @wise_investor Jan 23

I also trust this company and I was buying under 600 euros.

NT
Nigel Thornton @_thornton Jan 19

I'm not that interested in LVMH and I don't like the fundamental, but I find $RMS.PA much more interesting.

TM
Trevor Mills @trev_mills Jan 29

$RMS.PA is doing very well, but the problem is the high price. What price would you shop at?

MS
Malcolm Stokes @stokes_malky Jan 18

I've had the stock in my portfolio for a long time. Now the stock has been low for a while, but hopefully that is starting to change and the company is starting to do well.

WI
Wise investor @wise_investor Jan 18

The demand cycle for luxury goods is starting to turn, so I expect more positive results and news.

AA
Ashraf Aboudar @ashraf_dd Jan 18

I bought under 600 euros. I waited a long time for it, but I finally got it. If it goes down further, I'll buy more.