Background of the Rating
- Analysis by Bernstein Research: The rating is based on a comparative industry study that examines the shareholder structure of the largest luxury goods companies in France, including Hermes, Kering, and LVMH. These companies are all controlled by founding families that hold more than two-thirds of the voting rights.
- Target price of 600 Euros: The target price of 600 Euros for LVMH indicates that Bernstein Research expects further increases in the stock price. This target is ambitious compared to the current price of approximately 471.25 Euros and suggests significant growth potential.
Significance for Private Investors
- Market Position of LVMH: As one of the largest luxury goods companies, LVMH plays a significant role in the stock market. The “Outperform” rating may encourage private investors to invest in the company, as they can hope for above-average returns.
- Risks and Opportunities: However, private investors should also keep an eye on the risks. The luxury goods industry is dependent on economic trends and changes in consumer behavior. Despite the positive rating, it is important to monitor the overall market situation and specific company developments.
Comparison with Other Luxury Brands
- Hermes and Kering: Bernstein Research has also rated Hermes as “Outperform” with a target price of 2800 Euros. This indicates that the entire luxury goods industry is considered attractive for investment, particularly companies with strong family control and stable ownership structures.
Overall, the rating of LVMH as “Outperform” by Bernstein Research provides private investors with a positive outlook on the company’s growth potential. However, they should conduct a comprehensive analysis of the market situation and specific risks before making investment decisions.