Analyst Estimates: Here's What Brokers Think Of L'Oréal S.A. (EPA:OR) After Its Interim Report
It's been a good week for L'Oréal S.A. (EPA:OR) shareholders, because the company has just released its latest interim results, and the shares gained 3.3% to €387. It was a credible result overall, with revenues of €24b and statutory earnings per share of €11.44 both in line with analyst estimates, showing that L'Oréal is executing in line with expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on L'Oréal after the latest results.
Taking into account the latest results, the consensus forecast from L'Oréal's 19 analysts is for revenues of €46.9b in 2026. This reflects a satisfactory 3.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to expand 11% to €13.17. Before this earnings report, the analysts had been forecasting revenues of €46.6b and earnings per share (EPS) of €13.21 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
View our latest analysis for L'Oréal
It will come as no surprise then, to learn that the consensus price target is largely unchanged at €414. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on L'Oréal, with the most bullish analyst valuing it at €460 and the most bearish at €328 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await L'Oréal shareholders.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of L'Oréal'shistorical trends, as the 7.1% annualised revenue growth to the end of 2026 is roughly in line with the 7.3% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 5.0% per year. So although L'Oréal is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at €414, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple L'Oréal analysts - going out to 2028, and you can see them free on our platform here.
You can also see whether L'Oréal is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.