MS cuts LVMH on limited upside potential

Morgan Stanley cuts LVMH LVMH.PA to "equal-weight" from "overweight", seeing limited upside potential with the stock trading towards the top of its long-term valuation range

"We struggle to see why the stock would continue to appreciate in the coming weeks", MS says

The luxury conglomerate is in a "better place" than it was a year ago, with its business on a "better footing", it says, but flags forex headwinds, U.S. tariffs, raw materials posing risks to margins and EPS

It also expects LVMH's wines and spirits division sales to remain under pressure

"Our downgrade could prove unwarranted should the macro picture in China improve further," MS however adds

Out of 30 analysts covering LVMH, 16 rate it "strong buy"/"buy," 13 "hold" and one "sell" - LSEG data