On January 26, LVMH’s reports its Q4 earnings, and the fundamental question that remains is whether the current price is overvalued, or is the company’s mad dash just beginning?
LVMH Moët Hennessy Louis Vuitton SE is a world leader in luxury goods. Sales by product group are broken down as follows: Fashion and leather goods (48.1%): Louis Vuitton, Kenzo, Celine, Fendi, Marc Jacobs, Givenchy, etc.; Watches and jewelry (14%): Bulgari, TAG Heuer, Zenith, Hublot, Chaumet, Fred, Tiffany, etc.; Perfumes and cosmetics (10.3%): perfumes (Christian Dior, Guerlain, Loewe, Kenzo, etc.), make-up (Make Up, Hennessy, etc.), cosmetics (Hennessy, Hennessy, etc.), make-up products (Make Up For Ever , Guerlain, Acqua di Parma, etc.) etc.; as well as Wines and spirits (9.3%): champagne (Moët & Chandon, Mercier, Veuve Clicquot Ponsardin, Dom Pérignon, etc.; world number one), wines (Cap Mentelle, Château D’Yquem, etc.), cognacs (mainly Hennessy ; world number one), whiskey (especially Glenmorangie), etc.
The world’s number one luxury goods company LVMH exceeded Market capitalization of 400 billion euros on Tuesday on the Paris Stock Exchange, a first for a European company. The company’s market capitalization, which represents the amount of money it would take to buy all of the group’s shares, ended the session at 401.3 billion eurosaccording to Bloomberg.
Since the beginning of the year, the share price has increased by 17.28%sixth best performance The CAC 40 index, supported in particular by the reopening of the Chinese economy. It must be said that China represents o 30% customers of luxury giants (LVMH, Hermès, Kering, etc.). The turnaround by Beijing, which decided to reopen China’s economy and borders, has greatly benefited the luxury segment of the stock markets, as the Chinese are the sector’s main consumers. Stocks closed 0.59% on 797.40 eurosafter reaching the top 803.20 euros shortly after 16:00 (15:00 GMT). The stock has almost rallied since its 2022 low in early June 50%. Regarding the consensus of financial institutions and their analysts, out of 31 respondents, 19 are Buy, 8 Hold, 4 Hold. (see below)
LVMH is by far the most valuable company on the European stock market, ahead of food giant Nestlé and Danish pharmaceutical company Novo Nordisk. But it pales in comparison to global behemoths like Apple, which had more than $2.13 trillion on Friday at the US deadline. With 401 billion euros, LVMH is the 12th most valuable company in the world according to Bloomberg, which its owner Bernard Arnault the richest man in the world.
China’s reopening is one of the top ‘major trends’ for the luxury sector in 2023, they say RBC analysts in a note that it’s “reasonable” to predict “the trajectory of China’s luxury demand recovery.” In 2021, it represented Asia, except for Japan 35% of LVMH sales. “Strong brands in China today will remain strong brands when Chinese consumers travel abroad,” they say, citing LVMH, but also the French Hermèswhich is also approaching its record market capitalization, and Italian Ferragamo.
The #LVMH the price is currently at the level $794.6 above his cloud, his KIJUN (Lv) and his Tenkan (Lj); the lag spread (Lb) is above the cloud and its counterparts clearly indicate upward momentum. The price could reach $803.3but on the other hand, if the price started to fall again, it could reach $758.1and if this level is violated, it can reach $737.6 level of support in the second phase.
Click here to access our economic calendar
Disclaimer: This material is provided as general marketing communication for informational purposes only and does not constitute independent investment research. Nothing in this communication contains or should be considered to contain investment advice or an investment recommendation or a solicitation to buy or sell any financial instrument. All information provided is collected from reputable sources and any information containing an indication of past performance is not a guarantee or a reliable indicator of future performance. Users acknowledge that any investment in leveraged products is characterized by a degree of uncertainty and that any investment of this nature involves a high level of risk for which users are solely responsible and liable. We shall not be liable for any loss arising from any investment made based on the information provided in this communication. This communication may not be reproduced or redistributed without our prior written consent.