RBC announced on Wednesday that it had upgraded its opinion on L'Oréal shares from "underperform" to "perform in line with the sector", with a price target raised from 340 to 410 euros.

In a research note, the research firm explains that investor attention has recently focused on the ability of major consumer staples groups to protect their earnings.

The analyst considers this approach to be a real "aberration", believing that it is growth in sales volumes that enables them to gain market share and generate cash.

From this point of view, he continues, L'Oréal has managed to maintain organic growth of around 5% over the last two years, despite sluggish demand, particularly in China, and a trend towards higher prices.

Conversely, the FMCG sector as a whole suffered a contraction in sales volumes last year, he points out.

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