L'Oréal's Stock Surpasses 392 Euros at Close, Exceeding Its Resistance Level
L'Oréal's stock ended the session on Monday, January 12 at 392.40 euros, marking a 1.7% increase from Friday's close of 385.85 euros. This breakthrough of the resistance threshold, precisely at this level, indicates a strengthened upward momentum. However, trading volumes remained limited, with only 0.06% of the capital changing hands, reflecting a rise on modest quantities. Over seven days, the cosmetics giant has shown a remarkable performance of 7.6%, with a three-month gain of 6.15%. This progression occurs in a favorable context for the group, benefiting from renewed analyst interest. On January 9, UBS upgraded its rating from neutral to buy and set a target price of 430 euros, representing a potential increase of nearly 10% from the current level. This positive revision, coupled with the announcement at the end of October 2025 of the acquisition of Kering Beauté for 4 billion euros, the largest operation in L'Oréal's history, supports investor confidence in the group's strategy.
The technical analysis confirms the stock's positive orientation. The price is now trading above its 50-day (365.52 euros) and 200-day (373.21 euros) moving averages, indicating a medium-term bullish trend. The Relative Strength Index (RSI) stands at 57, in a neutral zone that still leaves room before reaching an overbought threshold, generally set at 70. This technical setup suggests a potential continuation of the upward movement. The group will publish its annual results for 2025 on February 12, a milestone that could catalyze new movements in the stock. Investors will particularly monitor the performance of the Luxury division, which lagged in the third quarter of 2025, as well as the confirmation of the recovery dynamics in China started at the end of last year. However, the consensus among analysts remains demanding for 2026, with high expectations reflecting the current valuation of the stock, trading at about 28 times the estimated earnings for 2025.
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« 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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