RBC sees an opportunity in LVMH after significant underperformance, potential +27%

Investing.com - In a note published Monday, RBC analysts pointed out that LVMH Moet Hennessy Louis Vuitton SE (EPA:LVMH) shares have recently underperformed, suggesting a potential buying opportunity.

Specifically, they noted that the stock has declined by 18% over the past three months, while the European MSCI index has risen by 2%.

The analysts highlighted that they are "cautiously optimistic" for the second half of this year, noting a potential revenue acceleration due to a low comparison base, which could be well received by investors.

They also mentioned that they have been cautious about the luxury sector in recent months but consider LVMH an exception due to its competitive advantages.

In this context, they reiterated their "outperform" rating for LVMH stock, with a target price adjusted from €905 to €900 due to a 2% reduction in the 2024 EBIT forecast, translating to a 27% upside potential compared to Friday's closing price.

Lastly, it's worth noting that many other analysts have a bullish view on LVMH stock. The average target price for the stock is €875.58, according to data available on InvestingPro, indicating a 21.15% upside potential.

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