RBC 'Reluctantly' Downgrades LVMH to Sector Perform Amid Muted Growth Outlook

06:50 AM EDT, 09/22/2026 (MT Newswires) -- RBC Capital Markets "reluctantly" downgraded its rating on LVMH Moët Hennessy - Louis Vuitton (MC.PA) to sector perform from outperform, citing a muted growth outlook and a "more cautious" view on the wider luxury sector. "Our previous positive thesis anticipating revenue growth acceleration commencing 2H26E and into FY27E, supported by creative renewal at Dior is less likely to materialise as we view the macro and luxury demand environment as having softened in 3Q26E, reflecting ongoing impact from Middle East conflict resulting in lower air passengers from Asia into Europe, higher oil prices pressuring disposable incomes, more volatile equity markets, and the start of a central bank rates tightening cycle to address persistent inflation," analysts wrote in a Tuesday note. "We await mid-term consensus expectations to rebase + tangible signs of luxury improvement." The research firm also lowered its 2026 and 2027 EPS estimates by 2% and 10%, respectively, and by 12% for 2028 as it updated its financial estimates to reflect its revised luxury sector view. The stock's price target was slashed to 475 euros from 575 euros. Meanwhile, the French luxury goods group is forecast to report a 1% organic growth in revenue to 18.3 billion in the third quarter of 2026, with its latest quarterly results set for release this October.