L'Oréal share retreats and hits key moving averages

BNP Paribas Exane upgrades rating to outperform with a 460 € target

On Wednesday, September 2, BNP Paribas Exane upgraded its rating on L'Oréal from neutral to outperform, while simultaneously raising its price target from 439 € to 460 €. Relative to the current price of 378.80 €, this new target represents a theoretical upside potential of approximately 21 %. This positive analyst move is insufficient to halt the stock's decline, which falls 1.61 % during this Thursday's session in a CAC 40 itself oriented downward (-0.36 %). L'Oréal ranks 35th out of 40 index values, among the most pronounced declines of the session, in the wake of the general retreat in large-cap luxury and beauty stocks. Over seven days, the security loses 2.17 %, and over one month, 2.11 %, drawing a regular consolidation since summer. When first-half 2026 results were published (July 29, 2026), management had displayed confident guidance, targeting another year of revenue growth and profitability progression, while highlighting the negative monetary impact of 2.8 % on revenues as of June 30 and the persistent difficulty of the Chinese market.

The price struggles below its 20 and 50-day moving averages, the 200-day MA remains support

From a technical standpoint, the price of 378.80 € is trading below the 20-day MA (384.14 €) and the 50-day MA (383.19 €), two near-term reference points that form an immediate resistance zone to overcome in order to regain positive momentum. Conversely, the 200-day MA at 374.59 € remains below the current price, offering support at approximately 1.1 % below current levels. The RSI at 51 reflects a neutral configuration, without oversold or overbought signals. Between the two short-term moving averages that cap the security and support at 368.85 €, the consolidation range remains relatively narrow. The next resistance level is at 394 €. Fundamentally, the group remains exposed to the geopolitical environment around the Strait of Hormuz — which is disrupting consumption in Gulf countries, a risk explicitly cited during half-year results — and to Chinese retail sales in cosmetics, up 6.8 % in July 2026 according to the National Bureau of Statistics, a signal of gradual recovery in this key market for L'Oréal.