L'Occitane International SA

00973: XHKG (HKG)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	HK$87.00	Rvmrk	Zpdvfldm

L'Occitane Earnings: Marketing Investments Propelling Growth, Guidance Unchanged; Shares Undervalued

Ivan Su

Nov 29, 2023

We maintain narrow-moat L'Occitane’s fair value estimate at HKD 37 following its broadly in-line fiscal 2024 first-half (ended September 2023) results. Management said holiday sales in China and the U.S. have been promising and maintained guidance for the full year. We view L’Occitane’s shares as undervalued, trading at more than a 50% discount to our fair value and an attractive 13 times price to fiscal 2025 PitchBook consensus earnings.

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