L'Occitane International SA
00973: XHKG (HKG)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
HK$47.00 | Frmssl | Gdwvnvxdf |
L'Occitane Earnings: Sol De Janeiro Almost Tripled Its Sales; Shares Undervalued
Narrow-moat L'Occitane’s fiscal secondquarter (ending September 2023) trading performance mildly exceeded expectations, but management maintains its full-year guidance. Overall, we keep our fair value estimate at HKD 37 and continue to view shares as very undervalued. We believe L'Occitane’s portfolio of brands has a strong competitive positioning and favorable growth prospects. Investors should find attractive the current market valuation of 16 times price to fiscal 2024 earnings.