Deutsche Bank report leads to L'Oréal share price drop
L'Oréal's share price fell on the Paris Bourse in reaction to a move by Deutsche Bank which issued a report on the cosmetics and consumer goods sector. The report argued that while the sector had over-performed through 2007 with good operating results and a "flight towards quality" after the credit crisis, nonetheless the momentum of results had led to an over-valuation. In the case of L'Oréal the bank said it recognised the impressive historic achievement but maintained the stock market valuation was already quite high and recommended shareholders to sell rather than hang onto shares.
L'Oréal's share price fell on the Paris Bourse in reaction to a move by Deutsche Bank which issued a report on the cosmetics and consumer goods sector. The report argued that while the sector had over-performed through 2007 with good operating results and a "flight towards quality" after the credit crisis, nonetheless the momentum of results had led to an over-valuation. In the case of L'Oréal the bank said it recognised the impressive historic achievement but maintained the stock market valuation was already quite high and recommended shareholders to sell rather than hang onto shares.