LVMH Price Target, Forecasts Updated as Bernstein Notes Pressure on Fashion Division

08:06 AM EDT, 09/15/2026 (MT Newswires) -- Bernstein revised its price target and forecasts for LVMH Moët Hennessy - Louis Vuitton (MC.PA), citing expectations that growth at the company's Fashion & Leather Goods division will be under pressure amid an intellectual property dispute with a Chinese tea chain. "We expect growth at LVMH's F&LG division to come under pressure as a recovery in China takes a pause, while a backlash from IP disputes with Molly Tea flare up," analysts said Tuesday. "The stars seem aligned for F&LG's growth to return to negative territory. Possibly in the low to mid-single digits." Bernstein lowered its price target to 520 euros from 570 euros, citing lower EPS forecasts and a lower valuation multiple. The outperform rating on the French luxury goods group's stock was retained, but Bernstein warned that it sees continuing headwinds to LVMH's share price in the short term. "The key problem for Louis Vuitton is affordability, not desirability. Brand equity remains pristine, brand execution flawless- the Molly Tea dispute, though regrettable, seems to have been managed carefully so far, and is certainly not set to repeat Dolce & Gabbana's 2018 scandal in China," Bernstein said. "Yet, with no correction to entry price bags at Louis Vuitton, we are likely to move mostly sideways in 2H26E. We expect top-line growth at Louis Vuitton to remain stable, but weak. We continue to keep track of mix changes at Louis Vuitton but have yet to see significant action on this front." The research firm also updated its financial forecasts for the third and fourth quarters. For full-years 2026 and 2027, the adjusted EPS projections were trimmed.