RBC Updates Model for LVMH After 'Reassuring' H1 Performance; Price Target Down

12:46 AM EDT, 07/28/2026 (MT Newswires) -- RBC Capital Markets revised its model for LVMH Moët Hennessy Louis Vuitton (MC.PA), tweaking its price target and earnings estimates after the French luxury goods giant published its first-half results. "LVMH has delivered a reassuring print with 2Q26 revenue growth slightly ahead of consensus (Wines & Spirits + Watches & [Jewelry]) and 1H26 EBIT is 3% ahead and net income is 9% ahead of consensus. No major surprises on the earnings call, so the remaining question is whether Fashion & Leather can lap the tougher 3Q comparatives to deliver on consensus estimates, which requires an underlying acceleration and is necessary for the stock to start working in our view," according to a Monday note. LVMH delivered first-half revenue of 38.64 billion euros, which was down 3% on a reported basis and up 2% organically. The company's net profit held steady at 5.70 billion euros. Against this backdrop, the research firm raised its full-year 2026 revenue and EPS estimates by 1% and 3%, respectively, and upgraded its 2027 and 2028 forecasts for both metrics by 1%. Analysts also marginally increased their working capital outflow projections, which led to a cut in their price target to 575 euros from 600 euros. RBC rates the stock at outperform.