[ET Net News Agency, 26 November 2019] Nomura raised its target price for L'Occitane
International (00973) to HK$21.9 from HK$18.3 and maintained its "buy" rating.
The research house said L'Occitane's 1H FY2020 net profit was up much a higher 352%,
given the strong OPM expansion. All brands demonstrated accelerated sales growth in 2Q
versus 1Q.
Management guided that the strong sales momentum has sustained in October-November 2019.
Nomura raised its FY2020 OPM assumption from 1.7pp expansion earlier to 3.3pp. It also
raised its FY2020-22 earnings forecasts by 11 -12% to reflect better sales growth and
higher margin. (KL)