RBC Capital Markets downgraded LVMH to sector perform from outperform. The bank lowered its price target for the luxury leader from €575 to €475.
Analysts anticipate softening demand in the luxury sector will continue through fiscal year 2027. RBC reduced its earnings-per-share estimates due to the Middle East conflict, volatile equity markets, and tighter monetary policies.
RBC projects organic revenue growth of 3.1% for LVMH in fiscal 2027. This forecast remains below the current market consensus estimate of 4.6%.