BofA Upbeat on L'Oréal's Growth Amid Sustained Beauty Market Share Gains

07:33 AM EDT, 10/08/2026 (MT Newswires) -- BofA Global Research is optimistic on L'Oréal's (OR.PA) third-quarter revenue growth, highlighting that the company sustained its market share gains in the beauty sector in the first six months of 2026. "We think 3Q26 is likely to be a positive catalyst as it will highlight the sustainability of its ~6% LFL growth algo, despite lapping 'tougher comps' and a complex China consumption backdrop, with the benefits of its Beauty Stimulus plan in full force. The innovation pipeline looks solid into 2H26 and 2027 supported by fragrance launches (Kering Beaute), skincare (including Luxe in China) and ongoing proliferation of haircare SKUs (new product and distribution)," analysts said Thursday. In its upcoming after-market sales update, the French cosmetics and personal care products group is anticipated to report a 6.1% adjusted like-for-like sales growth during the third quarter, 50 basis points higher than consensus. Looking further ahead, the research firm expects L'Oréal's EPS growth to resume, with an adjusted EPS compound annual growth rate of 9% over the next three years. As such, BofA reiterated its buy rating on the stock and price objective of 440 euros, noting that the group is part of its "25 stocks for 2026" and Europe 1 list of top ideas.