LVMH Technical Analysis: Potential Turnaround Indicated by Analyst Ratings and Margins

LVMH appears to be in a strong position with an excellent Refinitiv ESG score and high margins, leading to significant profits. Analysts recommend stock overweighting or purchasing, anticipating an above-average appreciation. Despite a history of beating expectations, the company is facing weaknesses such as overvaluation and downward revisions in sales and EPS forecasts. No recovery in activities is expected, and analysts' consensus has been revised downwards, which suggests caution for investors.

LVMH (Moët Hennessy Louis Vuitton), the world's leading luxury goods group, reported another impressive year in 2023, despite facing economic and geopolitical challenges [1]. With a strong focus on sustainability and innovation, LVMH recorded revenue of €86.2 billion, marking a significant 13% increase compared to the previous year.

One of the major contributors to LVMH's success was its European, Japanese, and Asian operations, which achieved double-digit organic growth. The group's profit from recurring operations also increased by 8% to €22.8 billion, with the current operating margin remaining stable. These impressive figures led to a group share of net profit of €15.2 billion, up 8% compared to the previous year.

Despite these positive results, LVMH is not without its challenges. Some analysts have raised concerns about the company's valuation, which has led to downward revisions in sales and EPS forecasts [2]. However, others remain optimistic about the long-term potential of LVMH's brands and their ability to maintain their desirability.

In addition to its financial performance, LVMH made progress in several key areas in 2023. The group continued to prioritize environmental protection, developing talent, and preserving and passing on its expertise. These initiatives align with LVMH's long-term vision and position the company well for the future.

Looking ahead, LVMH enters 2024 with confidence, backed by its highly desirable brands and agile teams. The year promises to be an inspiring and exceptional one for the luxury giant, featuring its partnership with the Paris 2024 Olympic and Paralympic Games [1]. With its focus on sustainability, innovation, and high-quality design, LVMH is well-positioned to continue leading the luxury goods market.

References:
[1] LVMH. (2024, January 25). New record year for LVMH. https://www.lvmh.com/en/publications/2023-new-record-year-for-lvmh
[2] Seeking Alpha. (2024, January 30). LVMH: Time To Buy Or Sell? https://seekingalpha.com/symbol/LVMH/analysis-322736-lvmh-time-to-buy-or-sell