L'Oréal Climbs 4.64% After UBS Upgrade to Buy
L'Oréal's stock soared by 4.64% to 379.75 euros midday this Friday, January 9, following UBS's upgrade of its recommendation to buy with a price target increased from 367 to 430 euros. The Swiss bank justifies this change with an improvement in performance indicators and an expected growth of 5.8% in 2026, above the consensus.
Significant Technical Reversal for L'Oréal
L'Oréal's stock marked an increase of 4.64% to 379.75 euros this Friday, January 9 at midday, up from a closing at 362.90 euros the previous day. This rise represents a significant technical reversal for the French cosmetics giant, as it now surpasses its key resistance level of 377.95 euros identified in previous days. The 50-day moving average, set at 365.21 euros, is also exceeded upwards, signaling a potential short-term trend change after several weeks of consolidation. This rebound occurs after Swiss bank UBS upgraded its recommendation from neutral to buy this morning, simultaneously raising its price target from 367 to 430 euros. UBS justifies this change by a significant improvement in the group's performance indicators, strengthened commercial dynamics in the United States and China, and reduced risks related to capital allocation. The bank anticipates a comparable sales growth of 6.4% in the fourth quarter of 2025 and 5.8% in 2026, above the consensus established at 6.1% and 5.1% respectively. JPMorgan has also added the stock to its list of securities offering the best short-term yield-risk ratio.
Technical Indicators and Valuation
The RSI, standing at 39, confirms that the stock had been moving in a technically neutral zone without signs of overbuying, leaving room for progression. The MACD trend indicator, although slightly negative with a MACD line at minus 0.68 point below the signal line at 0.63 point, does not prevent this vigorous rebound supported by a major fundamental catalyst. The moderate monthly volatility of 5.22% and an almost zero beta at 0.10 demonstrate a relatively decoupled evolution from the movements of the CAC 40, which enhances the interest in this independent movement of the stock. UBS highlights that the stock's valuation has become attractive again, with a ratio of 26.5 times the estimated earnings for 2026, a level 20% below its five-year average. The brokerage also praises the strategic decision of the group to limit its stake in Galderma to 20%, ending uncertainties over future capital allocation. Bernstein has also slightly lowered its price target from 410 to 405 euros while maintaining its market performance recommendation. The group will publish its annual 2025 results on February 12, a date that will focus investor attention following this bond issue of 1.75 billion euros carried out on January 7 to partly finance the acquisition of an additional 10% stake in Galderma.
