HSBC sees scope for outperformance in L'Oréal, upgrades to 'buy'

Loreal SA

18/02/2026 11:15

** HSBC upgrades L'Oréal OREP.PA to "buy" from "hold", saying the French cosmetics group's valuation has stalled despite consistent business growth and potential for outperformance in 2026

** Broker says an intense focus on innovation in skincare, the group's largest business, may significantly boost its relative performance this year

** Adds L'Oreal's scale, brand portfolio, marketing clout, tech investment and beauty brands recently acquired from Kering will compensate for the industry fragmentation

** The Paris-listed stock is up 1% to 394 euros

** HSBC ups its TP by 16% to 437 euros

** Out of 28 analysts that cover L'Oreal, 13 rate the stock "strong buy" or "buy",​ 12 rate it "hold" and three​ "strong sell" or "sell" - LSEG data

(Reporting by Alessandro Parodi)

((Alessandro.Parodi@thomsonreuters.com;))