BofA Tweaks L'Oréal Forecasts Amid Improved Growth Expectations in Asia

10:12 AM EST, 12/16/2025 (MT Newswires) -- BofA Global Research made "small" changes to its financial estimates for L'Oréal (OR.PA), taking into account slightly stronger growth expectations in Asia and foreign exchange mark-to-market effects. "We think there is growing evidence over a progressive recovery in the China ecosystem, tailwinds which support solid US trends and the beauty stimulus plan will lead to higher weight of innovation in 2026. This should support an acceleration in organic revenue growth, and an eventual P/E re-rating," analysts said Tuesday, anticipating the fourth quarter to be a catalyst for re-rating. The research firm nudged down its projected EPS for 2026 by 0.1% while the forecast for 2027 edged higher by 0.1%. Meanwhile, revenue estimates for both years were bumped up by 0.1%. BofA reiterated its buy rating on the stock and price target of 440 euros, adding that the French cosmetics and personal care products company is one of its "25 stocks for 2026." "For many companies under our coverage, we think the sell-side is too optimistic over a 2026 recovery, which will likely lead to ongoing negative EPS revisions. However, this is not true for L'Oréal and in this tougher backdrop we believe that its differentiated equity story will allow it to deliver attractive shareholder returns," analysts added.