LVMH Shares Rebound by 1.52% Despite Two Analyst Downgrades
On Wednesday, April 1st, the luxury giant's stock regained some color, showing a 1.52% increase to 470.15 euros during the session. This rebound occurs in a favorable market environment, with the CAC 40 gaining 2.12% during the session. However, the momentum remains fragile considering a decline of more than 27% over three months.
Analyst Downgrades Yet Positive Outlook for LVMH
On Sunday, March 30th, UBS and HSBC simultaneously revised their price targets downward for LVMH. UBS adjusted its target from 706 to 640 euros, while HSBC lowered it from 705 to 650 euros. Despite these adjustments, both institutions maintain a buy recommendation. Even after these adjustments, the targets imply a revaluation potential of over 36% compared to the current price of 470.15 euros, indicating a significant gap between market valuation and the fundamental estimates held by these intermediaries. The luxury sector as a whole is experiencing an upward movement this Wednesday. Hermès is up by 3.01% during the session, while L'Oréal is advancing by 1.92%. LVMH's general assembly scheduled for April 23rd, followed by the detachment of the balance of the dividend for 2025 on April 30th, are the next milestones in the group's financial calendar.
Technical Configuration Remains Degraded Despite Rebound
Despite today's rebound, the technical configuration remains degraded for LVMH shares. The price is significantly below its 50-day moving average, located at 518.84 euros, a gap of nearly 10% reflecting the bearish trend established since the beginning of the year. The RSI, at 34, is approaching the oversold zone, generally set below the threshold of 30, indicating that selling pressure has been particularly marked in recent weeks without yet reaching an extreme excess point. The technical support identified at 455.75 euros held during recent sessions, providing a short-term stabilization base. The next resistance threshold is at 561.80 euros, a level more than 19% above the current price. Monthly volatility, measured at 9.16, remains high, in a market environment marked by a VIX at 31.05 points at the close of March 27th, reflecting an extreme level of stress in the markets. The annual performance of the stock, down by 17.76%, underscores the magnitude of the correction suffered by the stock over the past year.
