L'Oréal Stock: After Hitting Yearly High, Shares Pull Back
L'Oréal shares dropped 0.2% on Thursday morning, February 5, 2026, trading at 398.60 euros. The cosmetics giant's stock is near its technical resistance after a 4.77% increase over the week, even surpassing its 12-month high earlier in the day at 401.80 euros. This pause occurs amidst recent revisions of price targets.
On February 3, Morgan Stanley lowered its price target on L'Oréal from 372 euros to 367 euros, while maintaining a market-weight recommendation. This new target suggests a potential downside of 7.93% from the current level. More notably, Deutsche Bank downgraded its recommendation from 'buy' to 'hold' on January 13, also lowering its target from 285 to 280 euros. This significant revision indicates a potential decline of about 29.7%, reflecting increased caution regarding the company's outlook. These adjustments come as the cosmetics sector faces questions about growth dynamics in Asia and purchasing power trends in Western markets.
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From a technical standpoint, the stock of the global beauty leader shows positive signals with an RSI at 63, indicating a bullish momentum without entering the overbought zone. The moving averages confirm this trend: the price is significantly above its 50-day and 200-day averages, at 375.81 and 376.22 euros respectively, signaling a structurally positive orientation. The recent crossing of the upper Bollinger band at 399.39 euros highlights an acceleration of the upward movement, with the stock now in a bullish extension configuration. The identified support at 356 euros provides a comfortable safety margin of 10.7% below the current levels. The upcoming presentation of the 2025 annual results on February 12 will be a major catalyst that could confirm or challenge this upward trend observed over the past three months, during which the French giant has recorded a 9.49% increase.
« 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.
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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.
