DZ Bank Upgrades LVMH to Buy, Calling Today's Selloff Excessive
DZ Bank announced Wednesday that it has upgraded its recommendation on LVMH to "Buy," arguing that the stock's sharp decline following results that were largely in line with expectations is exaggerated.
In a note released this afternoon, the German bank – which assigns an intrinsic value of €650 to the share – believes that the luxury group delivered solid performances, largely meeting the expectations of the financial community.
From its perspective, the owner of brands such as Christian Dior, Kenzo, Guerlain, as well as Moët & Chandon and Ruinart, managed to generate organic revenue growth in the second half, notably thanks to a rebound in activity in Asia (excluding Japan) and in the United States, a trend that makes the bank optimistic about the future.
The Frankfurt-based institution therefore considers that the roughly 7% drop in LVMH's share price today in Paris appears excessive and, in its view, represents an attractive buying opportunity, leading it to now recommend buying the stock.
LVMH Moët Hennessy Louis Vuitton SE is the world leader in luxury products. Net sales break down by family of products as follows:
- fashion and leather items (46.7%): brands such as Louis Vuitton, Christian Dior, Celine, Loewe, Kenzo, Givenchy, Fendi, Emilio Pucci, Marc Jacobs, Berluti, Loro Piana, etc.;
- watches and jewels (13%): Bulgari, TAG Heuer, Zenith, Hublot, Chaumet, Fred brands, Tiffany, etc.;
- perfumes and cosmetics products (10.1%): perfumes (Christian Dior, Guerlain, Loewe, Kenzo, Givenchy brands, etc.), makeup products (Make Up For Ever, Guerlain, Acqua di Parma, etc.), etc.;
- wines and spirits (6.6%): champagnes (Moët & Chandon, Dom Pérignon, Veuve Clicquot, Krug, Ruinart, Mercier, Château d'Yquem, Domaine du Clos des Lambrays, Château Cheval Blanc, Colgin Cellars, Hennessy, Glenmorangie, Ardbeg, Belvedere, Woodinville, Volcán de mi Tierra, Chandon, Cloudy Bay, Terrazas de los Andes brands, etc.; No. 1 worldwide), wines (Cape Mentelle, Château D'Yquem, etc.), cognacs (mainly Hennessy; No. 1 worldwide), whisky (mainly Glenmorangie), etc.;
The remaining net sales (23.6%) are from selective distribution through the Sephora, DFS, Miami Cruiseline chains and Le Bon Marché and La Samaritaine department stores.
At the end of 2025, products are marketed via a network of 6,283 outlets located throughout the world.
Net sales are distributed geographically as follows: France (8.3%), Europe (18%), Japan (7.9%), Asia (26.5%), the United States (25.6%) and other (13.7%).
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