BofA LVMH: Step by Step
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BofA maintains a Buy rating on LVMH (MC FP) with a target price of EUR 675, based on 25x 24-month forward P/E. In the first quarter of 2026, LVMH generated revenue of EUR 19.12 billion, representing 1% organic growth and meeting market expectations.
The core Fashion and Leather Goods division posted a 2% organic revenue decline, a one-percentage-point improvement from 4Q25. This sequential improvement was primarily driven by recovering demand from US and Chinese consumers. However, geopolitical disruptions in the Middle East, which reduced regional demand by double digits and caused a one-percentage-point drag on the quarterly total, partially offset this recovery.
The Watches and Jewelry division outperformed expectations with 7% organic growth, fueled by strong performances from Tiffany and Bulgari. This segment's strength provides a positive read-through for competitor Richemont.
BofA trimmed its full-year 2026–2028 revenue forecasts marginally, while EPS estimates remain broadly unchanged. With LVMH currently trading at 20x 12-month forward earnings—historically low for the stock—BofA sees an attractive entry point. The bank anticipates that gradual demand improvements, supported by upcoming Dior product launches, will ultimately benefit the industry leader once demand visibility solidifies.