L'Oréal Stock: 1.4% Decline After Technical Resistance Test
L'Oréal's stock fell on Wednesday, February 25, dropping 1.4% to 397.45 euros after hitting a key technical level the previous day. This movement comes as the stock had still shown a nearly 9% increase over three months. Berenberg has also slightly adjusted its price target on the stock.
L'Oréal's stock traded lower this Wednesday at 397.45 euros, after touching the resistance threshold at 403.10 euros the day before, a level almost coinciding with the upper Bollinger band (404.48 euros). This double technical ceiling has slowed the stock's progress, which had gained nearly 1.8% over a week. However, the decline remains contained above the 20-day moving average (390.15 euros), preserving the short-term upward trend. On a broader horizon, the price remains comfortably above the 50-day (381.28 euros) and 200-day (376.70 euros) moving averages, confirming a positive dynamic over several months. The RSI, at 60, is in a neutral to slightly positive zone, without overheating signals. The configuration suggests that the stock is consolidating after its recent rally, awaiting a new catalyst to sustainably break through the 403-404 euros zone.
Berenberg Slightly Adjusts L'Oréal's Price Target
Free · Every morning
Technical market signals, before the opening bell.
Bullish and bearish momentum, analyst changes, stocks to watch — automatically computed from Euronext data.
✓ Before 9 AM every morning✓ Euronext data✓ AI-powered analysis
Almost there! Check your inbox.
A confirmation email has been sent. Click the link to confirm your subscription.
An error occurred.
Indicative data. No investment advice. Unsubscribe at any time.
In a note dated February 23, Berenberg revised its price target on L'Oréal from 372 to 374 euros, while maintaining a 'hold' rating on the stock. This new target is approximately 5.9% below the current price of 397.45 euros, implying a downside potential according to the analysis of the German institution. This limited adjustment of two euros reflects continued caution regarding the valuation of the cosmetics group. Indeed, the stock has risen by more than 8.8% over the last three months, bringing its annual performance to 14.3%. With a beta of 0.16, L'Oréal continues to have a marked defensive profile, showing very low sensitivity to general market fluctuations. Monthly volatility remains moderate at 8.3%, confirming the relative stability of the stock despite recent variations.
« 2025 a été une année déterminante pour L’Oréal : nous avons réalisé des résultats solides tout en transformant le Groupe en profondeur. »
Résultats annuels 2025: chiffre d’affaires de 44,052 milliards d'euros (+1,3 % publié, +4,0 % à données comparables); marge brute à 74,3 %, marge d’exploitation à 20,2 %, bénéfice net par action à 12,71 €, dividende par action à 7,20 €, cash-flow opérationnel de 7,161 milliards d'euros; croissance soutenue par toutes les divisions et zones, forte dynamique e-commerce (~ 30%), et initiatives stratégiques (IA, M&A, Galderma).
Risks mentioned
Incidences macroéconomiques et incertitudes sur le marché mondial de la beauté
Effets de change et droits de douane défavorables
Opportunities identified
Plan de lancements et IA renforçant l’innovation produit
Croissance via le e-commerce et l’expansion internationale (Etats-Unis, Chine, marchés émergents)
Acquisitions et expansion via la participation accrue dans Galderma
Outlook / guidance
Management commentary: L’Oréal prévoit une année 2026 optimiste malgré les incertitudes macroéconomiques, et compte sur la croissance du chiffre d’affaires et des résultats grâce à sa stratégie multi-Divisions et à ses initiatives en intelligence artificielle et transformation digitale.
The information presented in this article is provided for informational purposes only and does not constitute an investment recommendation, an incentive to buy or sell a financial asset, or investment advice. Readers are invited to conduct their own research before making any decision.
Investments in the stock market involve risks, including the risk of capital loss. Past performance of an asset or market is no guarantee of future results. Any investment decision should be made taking into account your personal financial situation, objectives and risk tolerance.