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L'Oreal rises after Jefferies sees company outperform peers in second quarter

BUZZ-L'Oreal rises after Jefferies sees company outperform peers in second quarter 

** Shares of French Cosmetic maker L'Oreal OREP.PA rise 2.5% to €385.2 after Jefferies raises their target price from €323 to €328 ahead of first-half results

** The broker says L'Oreal has outperformed peers in Noram and EU Nielsen data for the last 12 months and it expects growth ahead of the category in second quarter

** The target price increase reflects a 3% jump in earnings, partially offset by an increase in the discount rate, the broker says

** "We believe the discrepancy between adjusted growth & Nielsen is driven by performance in untracked channels, predominantly luxe," Jefferies says

** Data shows a stronger growth outlook on the beauty sector in China, says the broker, adding that L'Oreal has gained shares in the online channel

** Session's gains added 4.8 billion euros to company's market cap, according to LSEG-compiled data


(Reporting by Margaux Perrin in Gdansk)

((Margaux.Perrin@thomsonreuters.com))

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