Citigroup ups L'Oréal to 'buy' on growth prospects

L'oreal SA

25/06/2026 08:52

** Citigroup upgrades French cosmetics group L’Oréal OREP.PA to "buy" from "neutral," citing the company's expectations of stronger long-term growth driven by its Kering Beauty division
** "Buy thesis is driven by a forthcoming acceleration in OSG to a 5.5-6.5% range starting in 2027, fuelled by the integration and ramp-up of Kering Beauty," the broker says
** It sees slowdown in H2 as temporary, not a sign of demand deterioration, flagging tough comparisons
** Citi recommends buying early, ahead of likely earnings upgrades expected in late 2026
** Out of 27 analysts who cover L'Oreal, 16 rate the stock "strong buy" or "buy," eight rate it "hold" and three  rate it "strong sell" or "sell" - LSEG data

(Reporting by Ronan Corcoran in Gdansk)
((Ronan.Corcoran@thomsonreuters.com))