Struggling to Recover from the Collision to Compete Again?
In a recent stock report titled "High End, High Potential," published by Börsenmedien AG, two stocks are highlighted as ready for the next luxury rally. However, the report does not indicate whether these stocks are related to LVMH, the luxury giant that is currently experiencing its toughest phase since the 2008 financial crisis.
LVMH, a French luxury conglomerate, has seen its share price plummet, losing more than half of its value since its record high in 2023 at 904.60 euros. The company, which can be added to a portfolio at a historically favorable price, reported solid H1 2025 results with €39.8 billion revenue, €9 billion operating profit, and a strong operating margin of 22.6%. Despite a challenging geopolitical and economic environment, the core business in fashion and leather goods, which generates nearly half of the group's revenue, saw a decline of only three percent in the first half, better than the four percent decline expected by analysts.
The latest predictions from leading US and European analysts indicate a generally optimistic outlook for LVMH's stock recovery and future price targets. Most forecasts suggest growth potential, with a consensus of analysts recommending "Buy" or "Strong Buy." The average projected stock price for the next six months is about €573.88, with some estimates reaching as high as €720 and a low around €460 by the end of 2025. TipRanks shows an average 12-month price target of approximately €565.14, implying about an 18.7% upside from current levels.
However, short-term volatility is expected, with some technical forecasts predicting a short-term decline of about -6% in the next 3 months, with possible prices between €401.44 and €469.59. If the hurdle around 540 to 545 euros is also overcome, the 200-day line at around 570 euros could come into play in the medium term.
The publisher Börsenmedien AG has a board member and majority shareholder, Mr. Bernd Förtch, who has taken positions in LVMH. However, the report does not provide any information about the potential impact of these positions on the price of LVMH or whether they are long or short positions.
The analyst community remains predominantly positive, with RBC maintaining its "Outperform" rating and seeing a price target of 550 euros, Bernstein Research expecting a further 600 euros, and Citigroup rating the stock as a "Buy" with a price target of 635 euros. Despite some recent downgrades from "Strong Buy" to "Hold" by a few US analysts citing lowered earnings estimates and short-term risks, the overall consensus remains positive.
In summary, leading US and European analyst firms broadly predict LVMH will recover and continue growing, with average price targets ranging roughly from €565 to €720 over the next year. Short-term volatility is expected, but fundamental results and long-term strategic confidence are strong. The consensus recommendation leans toward buying and holding LVMH stock.
[1] Analyst forecasts and price targets are subject to change based on various factors and should not be taken as definitive.
[2] Technical forecasts are based on historical price movements and trends and should be used in conjunction with other forms of analysis.
[3] Information sourced from LVMH's H1 2025 results press release and CEO Bernard Arnault's statements.
[4] Analyst recommendations are based on individual analysts' interpretations of the company's performance and future potential and may change over time.
[5] TipRanks data as of [date].
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