[ET Net News Agency, 3 December 2020] CLSA lifted its target price for L'Occitane
(000973) to HK$23 from HK$20.1 but downgraded its rating to "outperform" from "buy".
The research house has been positive on L'Occitane's recovery path from COVID-19 since
March; it came, and much faster than CLSA expected. With a clean beat at both its top and
bottom lines, its share price has seen a strong rally over the past two days, reaching a
five-year high.
CLSA hosted L'Occitane on a post-results, non-deal roadshow (NDR) recently, and CLSA is
incrementally more confident in L'Occitane's longer-term potential regarding its Elemis
brand as well as its shift in channel, category and geography mix, which could
structurally improve L'Occitane's mid-to-long-term OPM beyond 15%. (KL)