LVMH Stock Rebounds Over 2% and Moves Above Its 50-Day Moving Average
The world's leading luxury brand is on the rise in mid-morning trading in Paris, even as the CAC 40 index slightly trends downward. This movement follows a target price increase by UBS. The stock is recovering some of its late June losses in the Paris luxury segment.
UBS Raises Target to €650 and Reaffirms Buy Rating on LVMH
UBS increased its target price for LVMH from €640 to €650 on July 2, while reaffirming its buy rating. The new target represents a potential upside of over 32% from the current price of €491.55. The stock is up 2.19% during the session, while the CAC 40 is down 0.18%. The rebound occurs in a challenging sector environment in Asia, with Swiss watch exports to China down 21.4% and Chinese jewelry sales dropping 8.9% year-over-year in May, according to the latest official statistics.
Stock Moves Above Its 50-Day Moving Average but Remains Below Its 200-Day Average at €542.21
Today's rebound brings the price to €491.55, which is 2.99% above the 50-day moving average of €477.30, while the 20-day moving average at €494.91 remains close, just 0.68% above the current price. The medium-term configuration remains weak, with the 200-day moving average at €542.21 capping the stock at 9.34% above current levels. The RSI at 56 indicates a contained movement, without excess. Over the past month, the stock has gained 4.1%, only partially offsetting a 9.3% decline from late June relative to the 200-day moving average. The next resistance point is identified at €520.30.
