Published Apr 11, 2019 05:42AM ET
Updated Apr 11, 2019 07:40AM ET
LVMH Does It Again, as Buoyant Message Gets a Cheer: Street Wrap
(Bloomberg) -- LVMH shares jumped to a record thanks to first-quarter sales that Bank of America Merrill Lynch (NYSE:BAC) called “exceptional” and a positive message from the French luxury giant to investors worried about a potential slowdown in the industry.
The owner of the Louis Vuitton, Fendi and Christian Dior brands said after the close of trading Wednesday the environment was “buoyant” at the beginning of the year, despite geopolitical uncertainties. The stock surged as much as 4 percent, to the highest level since LVMH went public in 1989, boosting peers across Europe, from Kering (PA:PRTP) SA to Swatch Group (SIX:UHR) AG and Moncler SpA (MI:MONC).
“The choice of opening words is more bullish than we would have expected it to be,” Melanie Flouquet, an analyst at JPMorgan Chase & Co (NYSE:JPM)., wrote in a note. The word buoyant is “the exact word investors would have liked to read at this juncture of the sector high multiples.”
Here is what else analysts are saying about LVMH’s update:
Bank of America Merrill Lynch, Ashley Wallace (Buy)
Bryan Garnier, Loic Morvan (Buy)
Jefferies, Flavio Cereda (Hold)
JPMorgan Cazenove, Melanie Flouquet (Overweight)
Societe Generale (PA:SOGN) (upgraded to Buy from Hold)
Written By: Bloomberg
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