LOreal Share Forecast: Can (EPA: OR) Price Boost Upward?

On April 3, 2023, L’Oréal S.A. announced its plan to acquire Aesop Retail Pty Ltd, a subsidiary of Natura Cosméticos S.A., for $2.5 Billion in cash. The acquisition is subject to regulatory approvals and is anticipated to be completed in the third quarter of 2023. Aesop recorded $537 million in sales in 2022.

Natura Cosméticos S.A. was advised by Morgan Stanley, Bank of America Corporation, and Davis Polk & Wardwell LLP, while L’Oréal S.A. was advised by Centerview Partners and Latham & Watkins LLP.

However, on August 30, 2023, Liontrust Asset Management PLC decided to cancel its proposed purchase of GAM Holding AG from Newgame SA, Bruellan SA, Silchester International Investors LLP, and others.

The LOreal share has a high earnings growth rate of 10.0% per year, which is higher than the personal products industry average of 7.7%, as per SimplyWall, a financial data website. LOreal’s return on equity is 20.9% and its net margin is 14.4%.

The market capitalization of OR share is €212.344 Billion and the total revenue is €38.261 Billion. Moreover, the share’s basic EPS is €10.90 and the price-to-earnings ratio is 36.65. Moreover, the average volume is 241.314K and the current volume is 279.29K which is above average volume.

Moreover, this month, the share has not performed well as it was down by 1.49% and is up by 9.11% over the last six months. Moreover, LOreal (EPA: OR) share’s year-to-date return is positive with an increase of 20.26% and its overall 1-year return is positive with an increase of 18.31%.

LOreal Technical Analysis in 1-D Time Frame

The price action shows that the LOreal (EPA: OR) price rebounded from the demand zone of €370 on March 15, 2023, and rose by making higher highs and higher lows. After reaching a high of €442, it started facing resistance and declined and took support at $395 and is trying to rebound and bounce back. If OR share manages to surpass the opposing trendline, the price might go up.

Moreover, at the time of writing, the CMP is €404.25 and the price has been moving in a tight range for the last couple of months. To shoot a rally, buyers need to increase their volume as it is below the moving average. If the current volume surges above the moving average, new highs may appear in the coming weeks.

Therefore, if LOreal fails to maintain the current level, the OR price could continue to drag downwards and hit the nearest support levels around $395 and $387.

However, if the stock price sustains the current level and the LOreal price increases, it might reach the nearest resistance levels of $428 and $434.

At the time of publishing, the LOreal (EPA: OR) price is trading below the 20, and 50-day EMAs (exponential moving average), which is rejecting the price trend.

The current value of RSI is 48.60 points. The 14 SMA is slightly above the median line at 46.04 points which indicates that the price is neutral.

The MACD line at 1.8817 and signal line at 1.8392 are below the zero line and both lines are intertwined with each other and the histogram gap is slim, indicating neutrality.

Summary

LOreal share price shows that the investors and traders of OR shares are neutral about its direction in the 1D time frame. The price action shows a neutral to bullish outlook at the time of publishing. The technical parameters of the LOreal share price also support the neutral to bullish trend. The major indicators MACD, RSI, and EMA in LOreal share are giving consolidation to bullish signals and imply that the uptrend may continue if consolidation ends.

Technical Levels

The nearest support: €395 and €387.
The nearest resistance: €428 and €434.

Disclaimer

In this article, the views and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.