LVMH Stock Soars Nearly 4%, Up +13% Over the Month
The world's leading luxury company opens with a strong rise in Paris, in a CAC 40 significantly trending upwards. The stock continues the recovery momentum of the luxury sector, even as Berenberg has just significantly lowered its price target. This movement occurs in a market context marked by a relaxation of Brent and a return of appetite for risky assets.
The Stock Crosses €510 and Ranks Among the Top Gainers of the CAC 40
LVMH stock gains 3.77% to €511.80 at the opening, after closing the previous day at €493.20. The stock ranks among the top gainers of the CAC 40, in a session dominated by cyclicals and luxury (Kering, Stellantis, Renault, Safran). The Paris index climbs 1.57% during the session, driven by a relaxation of Brent under $89 and hopes for easing tensions in the Middle East. The day's progress brings the weekly performance to nearly 8% and the gain over a month to more than 13%.
The price significantly exceeds its 20 and 50-day moving averages, located respectively at €474.61 and €472.39, with a gap of more than 7% reflecting the intensity of the rebound. The 200-day MA at €542.53 remains however 5.7% above the price, indicating that the medium-term trend has not yet reversed. The RSI at 61 accompanies the rise without signaling immediate overheating, while the MACD remains positive. The €493 resistance, already breached as mentioned in Wednesday's session, is now clearly surpassed.
Berenberg Significantly Lowers Its Price Target but Maintains a Hold Rating
On June 11, Berenberg lowered its price target on LVMH from €560 to €420, while confirming its hold rating. The new target is nearly 18% below the current price, reflecting a cautious valuation by the analysis firm. This revision comes in a still fragile sector context: jewelry and gold sales in China fell by 21.3% year-on-year in April according to the NBS, and French exports of wines and spirits dropped 4% in value in the 2024 report.
Yet, the stock disregards this adjustment, in a session where the ECB has just raised its key interest rates by 25 basis points and where US inflation reached 4.2% in May. The day's rebound mitigates the 5.66% decline in the price relative to the 200-day moving average, but does not erase it. The next technical level to watch is the 200-day MA at €542.53, which will be the test for validating a more sustainable turnaround.
