While maintaining its 'buy' recommendation on L'Oréal, Stifel has lowered its price target from €470 to €450, in the wake of a 1.5% reduction in its 2024-25 operating profit expectations for the cosmetics giant.

The broker factors in weaker growth assumptions for luxury goods and North Asia, due to persistently low Chinese consumer confidence and deteriorating momentum in Chinese shopping mall footfall.

While acknowledging the weak market trends in China in the second quarter, Stifel nevertheless considers that these can be largely priced in, with the stock down 10% over the past month.

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