Diversified Sales Base Protects L'Oreal From Economic Volatility in Q3; Shares Fairly Valued

After wide-moat L'Oreal reported third-quarter revenue, we do not plan to materially revise our EUR 318 fair value estimate. We believe the shares are fairly valued. Sales in the first nine months of the year increased 20.5% (approximating our 19.8% estimate for 2022), driven by a 12.0% gain in like-for-like sales, an 8.1% currency boost, and a 0.4% contribution from acquisitions. We maintain our long-term outlook for mid-single-digit sales growth as inflation, which should recede in the coming quarters, is temporarily lifting growth above this level.