It seems luxury product firm LVMH remains immune to the crisis as it registered 22% growth in operating earnings to pass the €5bn mark for its first time ever (€5.26bn). Sales rose 16% to €23.659bn from €20.32bn in 2010.

Following these surprisingly good results, analysts have been quick to revise their valuations. For instance, Nomura increased its outlook after the operating margin surpassed its previous estimates. The Japanese broker announced a more solid outlook for 2012 even though it reiterated its neutral recommendation and €135 price target.

JP Morgan, on the other hand, said that LVMH's results are robust but in line with expectations and therefore not a surprise. It believes that it could trigger some profit-taking for the stock. Nevertheless, JP Morgan raised its 2012 earnings outlook slightly in order to reflect the 2011 results.

The analysts at Oddo were more optimistic though. They said that the 2011 results are a good indication for next year. They also upped their 2012 net income estimate arguing that LVMH is the most balanced stock with least risk in the sector. They raised their price target to €146 from €140 and reiterated their buy recommendation.

OTHER RECOMMENDATIONS

Societe Generale maintains a buy recommendation and raises its price target to €150 from €145.

Bryan Garnier reiterates a buy recommendation and raises its price target to €140 from €130.

CM-CIC reiterates a buy recommendation with a price target of €143.

Nevertheless, shares had fallen 0.95% to €125.20 by 14:01 in Paris.

M.D.

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