Jefferies upgrades L'Oreal to 'hold' on China rebound, accelerating growth

L'oreal SA

06/08/2026 08:48

** Jefferies upgrades French cosmetics maker L'Oreal OREP.PA  to "hold" from "underperform," citing evidence of accelerating growth and a firmer China market
** Q2 results were "reassuring", with "broad-based outperformance across nearly all divisions and region," Jefferies says 
** The broker adds that China's recovery is "key", boosting market growth and aiding multinationals after years of pressure from local competition
** However, Jefferies expects slower operating margin expansion than consensus, noting that L'Oreal's A&P efficiency claims tied to AI usage seem to "have shifted slightly," with savings efforts now seem to be focused on SG&A instead
** Shares were up 2.1% at 07:42 GMT
** Out of 27 analysts that cover L'Oreal, 16 rate the stock "strong buy" or "buy", nine rate "hold" and two​ rate the stock "strong sell" or "sell" - LSEG data
     

(Reporting by Aleksandra Kret in Gdansk)
((aleksandra.kret@thomsonreuters.com))