BofA Ups Price Objective, Estimates for L'Oréal After Q3 Beat; Buy Rating Kept

08:02 AM EDT, 10/23/2026 (MT Newswires) -- BofA Global Research raised its price objective and earnings projections for L'Oréal (OR.PA) after the French cosmetics and personal care products company delivered better-than-expected performance in the third quarter amid "tougher" comparisons. "3Q26 adjusted LFL of +7.7% was well ahead of the 6% bar, and 140bps faster than 2Q despite a tougher comp (+5.5% in 3Q25 vs +3.2% in 1H25). As we highlighted in Express your worth, 3Q was the catalyst we've been looking for: the stock should re-rate on increased visibility over a new, higher growth algo (sustainable return to +6% LFL), and double-digit EPS growth after 2.5 years of flat earnings. L'Oreal has a best-in-class track record of delivering 20-40bps of EBIT margin expansion, which just became more exciting given its +11.9% reported revenue growth should fully flow through to the bottom line," the research firm said Friday. As such, analysts lifted their three-year revenue and EBIT estimates by 1% to 2% and 1% to 3%, respectively, while EPS forecasts also rose by 1% to 3%. The upgrades were supported by stronger like-for-like sales, "more favorable" currency and additional mergers and acquisitions. BofA also raised its price objective to 460 euros from 440 euros, while maintaining a buy rating on the stock. The research firm noted that the beauty industry is its "preferred" consumer exposure and named L'Oréal as its "top pick."