L'Oréal stock struggles below its moving averages and falls 1.5%
The share of the Parisian cosmetics giant is struggling to resist market pressure on Thursday, amid rising volatility and geopolitical tensions that complicate sector visibility. CIC Market Solutions has nonetheless just raised its price target on the security, signaling intact conviction on the file in the medium term.
CIC Market Solutions raises its target to €420 but the stock loses ground below its moving averages
On Wednesday, September 9, CIC Market Solutions raised its price target on L'Oréal from €400 to €420, while maintaining its buy rating. From the current price of €376.85, this new target represents an upside potential of approximately 11.5%. The revision does not prevent the stock from falling 1.27% during the session, in a CAC 40 that declines by 0.32%.
The two short and medium-term moving averages are weighing on momentum: the 20-day moving average at €383.63 and the 50-day moving average at €383.02 are both above the price, forming a technical ceiling to break through. Only the 200-day moving average, at €375.14, remains in line with the current price (spread of +0.46%), constituting for now a short-term support level.
A loaded macro context and headwinds in the luxury-beauty sector weighing on the stock
The session is taking place in a tense market environment. The VIX surged nearly 12% during the session, a sign of heightened risk aversion. The ECB is holding a monetary policy meeting today: markets are almost unanimously anticipating a rate hike of 25 basis points, bringing the deposit rate to 2.50%, in a context where eurozone inflation rebounded to 3.3% in August, fueled by soaring oil prices. Brent crude has crossed the $100 per barrel mark, due to tensions between the United States and Iran. This inflationary shock is weighing on household purchasing power, a watchpoint for a group whose exposure to emerging markets and China remains significant.
When publishing the first half of 2026 results (on July 29), management had mentioned a selective market in China and consumption affected in Gulf countries by the Middle East conflict, while expressing confidence in another year of revenue growth and profit margin expansion. It should be noted that cosmetics sales in China were advancing 6.8% on an annual basis in July 2026, which nuances the picture. The RSI at 48 indicates a neutral configuration, with no oversold signal despite the decline. The next significant resistance is located at €394, while the support at €370 represents the threshold to watch in case of an accelerated decline.
