L'Oréal Shares Break Resistance at €377, Rothschild Raises Target to €415
The French cosmetics giant marks one of the best rebounds on the CAC 40 at midday. The stock surpasses a closely watched technical threshold in a well-oriented Parisian market. An analyst note published the previous day further bolsters the movement.
The stock breaks the €377.45 resistance and moves above all its moving averages
L'Oréal shares gain 3.27% to €380.75, among the strongest rises in the CAC 40, which is up 0.81%. During the session, the stock broke its resistance at €377.45 and remains above it. The price is now above the MM20 (€362.42), MM50 (€358.08), and MM200 (€373.17), with a gap of 5.06% on the short average and 2.03% on the long average. The RSI at 57 remains neutral, which keeps the movement free from extreme tension despite the breakthrough. Over the week, the gain reaches 6.59%, after a quarter still down by 4.2%. This acceleration erases part of the early May downturn when the stock had fallen to €355.55 under the impact of the oil shock on the luxury sector.
Rothschild & Co Redburn Raises Target to €415 Amid Chinese Recovery
Rothschild & Co Redburn has raised its price target from €410 to €415, while maintaining a 'buy' recommendation on May 26. The new target offers a potential upside of nearly 9% from the current price. This increase extends a favorable sequence of analyst movements, following the move by BNP Paribas Exane in early May already documented on the cosmetics giant's stock. The sectoral context provides support: according to NBS data, sales of cosmetic products in China grew by 4.7% year-on-year in April, while total Chinese retail remains almost stagnant at +0.2%. The cosmetics segment thus significantly outperforms overall Chinese consumption, a sensitive point for the group which conducts a significant portion of its business in Asia. The €377.45 zone, now surpassed, becomes the first reference level to watch on the downside.
