L'Oréal Stock Falls 1.1% at Close
L'Oréal shares closed down 1.1% at 387.15 euros this Thursday, January 15, correcting after having breached its resistance level of 392.40 euros last Monday. This slight correction comes as Deutsche Bank upgraded its recommendation from sell to hold on January 13, raising its price target from 340 to 360 euros, still below the current price.
French Cosmetic Giant Loses Ground
The French cosmetics giant lost ground after reaching its weekly high on Monday at 392.40 euros, surpassing its technical resistance set precisely at this threshold. This pullback brings the price below this key level, which has now become a resistance zone again after being briefly exceeded. Over seven days, the stock still shows a solid performance of 8.75%, while the three-month gain stands at 5.06%. Over one year, the increase reaches 18.52%, indicating a strong underlying bullish trend despite short-term corrections. Technical analysis shows that the price is still above its 50-day moving average, established at 367.05 euros, a sign of medium-term support. The Relative Strength Index (RSI) is at 69, approaching the overbought zone usually set at 70, which may justify profit-taking by some investors. This configuration suggests that a consolidation phase remains possible before a possible resumption of the upward momentum.
Market Context Influenced by Deutsche Bank's Upgrade
This Thursday, the stock operated in a context marked by the upgrade, two days earlier, of Deutsche Bank's recommendation from sell to hold, with a raised price target from 340 to 360 euros. The German bank believes that the context for the basic products sector remains mixed, although a significant amount of negative factors seems already integrated into the prices. This adjustment comes after several analysts had expressed divergent views on the matter: UBS had raised its recommendation to buy on January 9 with an ambitious target of 430 euros, while Bernstein maintains its market performance recommendation with a target of 405 euros. The group will publish its annual results for 2025 on February 12, a deadline that will focus investor attention. These publications will follow the bond issue of 1.75 billion euros carried out on January 7, aimed in particular at financing the acquisition of an additional 10% stake in Galderma. The consensus among analysts remains demanding, with the stock trading around 28 times the estimated earnings for 2025, reflecting high expectations for the group's ability to confirm its growth momentum.
