JPM expects L'Oreal to see weaker H2, shares slip

L'oreal SA

03/07/2026 08:58

** J.P. Morgan expects L'Oreal OREP.PA to see a weaker H2 despite the expected robust H1 topline performance
** Shares in the French cosmetics group fall 2.4%
** "Net-net, we see the positive top line set up for Q2, and increased investors’ interest for the name in a scenario of rotation into discretionary," JPM says
** However, the broker says it doesn't share the excitement ahead of H2 growth deceleration, potential EPS cuts and still high valuation
** JPM maintains a "neutral" rating on L'Oreal and estimates a 5.1% growth in Q2 LFL sales with a slower H1 profit growth overall
** L'Oreal is among the worst performers on Europe's STOXX 600 .STOXX
** YTD, the stock is up 3.1%

(Reporting by Gianluca Lo Nostro)
((gianluca.lonostro@thomsonreuters.com;))