HSBC downgraded LVMH (MC.PA) from Buy to Hold. The bank reduced its price target for the luxury group from €600.00 to €490.00.
The downgrade follows weaker-than-expected performance in the Fashion and Leather division. This segment, which includes the Dior brand, contributes a substantial portion of the group's total revenue and earnings. HSBC cited current macroeconomic difficulties in the soft luxury market as the primary driver for the revised rating.
LVMH shares are currently trading near a 52-week low following a significant year-to-date decline. While the bank maintains a cautious short-term outlook, it acknowledged the long-term growth potential of the core fashion business.
Other business units, including Wines and Spirits and Watches and Jewellery, continue to perform well despite the broader market slowdown.