UBS has revised its price target for L'Oréal downwards from €415 to €409, but still maintains a 'neutral' rating on the stock.
This adjustment is based on a disappointing third-quarter performance, a cautious outlook, and a proposed tax increase in France.
As a result, UBS has also lowered its earnings per share estimate for 2025 by 5%.
The brokerage highlights a lack of positive catalysts in the near term, indicating limited potential for a rebound in L'Oréal's share price.
Therefore, investors are advised to exercise caution while the leading cosmetics company faces these challenges.