LVMH stock: difficult start in 2024

Last Updated: 12. Januar 2024By

The LVMH stock has started the 2024 stock market year with significant losses. Since the beginning of the year, the stock has been trading about 10% lower – and in today’s morning trading, the luxury goods stock has slipped around 2% after the profit warning from competitor Burberry (as of January 12, 2024, around 10 am).

Things have not been going well for the luxury goods company from France lately. Among other things, UBS has lowered its target price. Nevertheless, the LVMH stock offers long-term opportunities for investors. After all, the company is the number one in the industry and the market is expected to continue to grow significantly in the coming years.

LVMH under pressure – the reasons
British Burberry has lowered its profit forecast after a disappointing December business, which has also weighed on competitors Kering and LVMH. In addition, the LVMH stock fell below the 700 euro mark at the beginning of the year after the December upswing and is down almost 15% on an annual basis.

After the setback in 2023, the outlook for the luxury goods market for the current year is also uncertain. Some experts are also predicting problems for 2024. For example, UBS reduced its target price for the LVMH stock from 770 euros to 747 euros in its latest analysis from the beginning of January. In the long term, however, the LVMH stock remains an interesting investment.

Why the LVMH stock remains interesting for long-term investors
Because most analysts are optimistic. For example, Goldman Sachs sees the target price for the French company at a whopping 980 euros, up from „only“ 950 euros. After the enormous rally in recent years, the consolidation that has been going on since the summer is not a big deal. In the last 5 years, there is still an impressive increase in value of 160% on the board.

At the moment, there is a dent in the growth of luxury goods, but according to experts, the market is expected to continue to grow significantly in the medium term. As the industry leader, LVMH is well positioned to benefit from this development. Therefore, the outlook for the LVMH stock is at least good – the recent weak performance can also be seen as an opportunity.