L'Oréal (OR FP) Buy: Peer and end market outperformance set to continue

研报英文原文证据摘录

L'Oréal (OR FP) Buy: Peer and end market outperformance set to continue

ustained in Consumer as

52-WEEK PRICE (EUR)

the sell-in, sell-out gap closes while, in Luxe, the benefit from Asia travel retail

improving can almost offset higher comps and the Q1 boost from fragrance launches. 460.00

Below the line, we see a modest improvement in profitability with earnings benefiting 395.00

from Galderma’s first-time inclusion as an associate. Hence we look for EPS to rise 330.00

c7% to EUR7.49 in H1. 06/25 Target price:12/25445.00 06/26

High: 406.70 Low: 344.90 Current: 387.95

Views on the remainder of 2026: L’Oréal is set to face a higher base of comparison Source: LSEG IBES, HSBC estimates

in Q3 before this eases in Q4 as the group laps the Asian travel retail issues. The

bigger picture though is that we expect the global beauty market to remain relatively Jeremy Fialko*, CFA

dynamic while the group should continue to benefit from an uplift in the innovation Senior Global Consumer Staples Analyst

HSBC Bank Middle East Limited, DIFC

rate as part of its Beauty Stimulus plan. Moreover, we think that the group’s digital, jeremy.fialko@hsbc.com

data and AI capabilities, when paired with an unparallelled marketing budget, offer +971 4 509 3366

the group formidable competitive advantages that should solidify outperformance of Nitin Jaggi*

Associate

the beauty market to a greater extent than in 2025. Bangalore

Ingredients in place for the shares to progress: Although L’Oréal’s shares have

* Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

made some progress this year, they remain roughly unchanged on a five-year view not registered/ qualified pursuant to FINRA regulations

despite earnings having risen c60%. This absolute de-rating has taken the multiple