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L’Oreal Has Margin Upside, Flexibility, HSBC Says; Raises PT 2014-01-07 09:39:29.96 GMT
By Chiara Remondini Jan. 7 (Bloomberg) -- L’Oreal’s slower sales growth in past few quarters is downside of size, HSBC says in note; sees 5%-6%/yr sales growth as slower but more sustainable benchmark. * HSBC raises PT to EU146 vs EU121 on margin upside, balance sheet flexibility; repeats overweight * Says scale in Cosmetics business is source of margin upside; sees “low-hanging fruit” (Brazil, Southeast Asia) to provide margin upside (50-100bps) * NOTE Oct. 30: L’Oreal 3Q LFL sales missed est.; 2013 goals confirmed * NOTE: L’Oreal due to report 2013 results on Feb. 10 * NOTE Jan. 3: Beiersdorf, Henkel, L’Oreal may gain most from buybacks: Liberum
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--Editor: Jurjen van de Pol
To contact the reporter on this story: Chiara Remondini in Milan at +39-02-8064-4241 or cremondini@bloomberg.net
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