L'Oréal Shares Drop 2% and Fall Below MM20, Dragged Down by CAC 40

A Decline within a CAC 40 Weighed Down by Middle East Tensions

L'Oréal shares drop 2.07% to €380.30 in late afternoon trading, while the CAC 40 loses 1.99% at 8,268 points. The decline occurs in a tense market environment, marked by new US strikes against Iran and Tehran's claimed retaliation on military facilities in Kuwait and Bahrain. In Ankara, Donald Trump stated that the ceasefire with Iran was, in his opinion, over, which fueled nervousness on European stock markets. The VIX jumps over 10% to 17.84, reflecting the rise in risk aversion. Despite this decline, the stock limits the damage compared to the steepest drops in the index (Société Générale, EssilorLuxottica, Stellantis, all down nearly 5%). Over three months, the stock still shows a gain of 8.4%, particularly driven by the group's exposure to the cosmetics segment in China, where NBS cosmetics sales grew 2.5% year-on-year in May 2026.

RBC Raises Its Target to €450 and MM50 Remains Supportive Below the Price

RBC Capital has raised its price target on L'Oréal from €430 to €450, with an 'outperform' rating confirmed on July 7, 2026. The new target offers an implied potential of nearly 18% over today's price. The stock falls below its 20-day moving average (€384.13), with a limited gap of -1%, while the MM50 at €374.45 and the MM200 at €371.87 remain solidly below the price (respective gaps of +1.56% and +2.27%). The RSI at 56 remains in the neutral zone, which indicates a mere breather after the recent rebound rather than a reversal signal. The group's commercial momentum relies on recent movements, including the takeover of the Indian company Innovist announced on June 18 and the alliance with OpenAI unveiled at VivaTech 2026. The support at €370.45 remains the next technical reference level in case of an intensified decline.