LVMH shares rose to a fresh record high on Tuesday, giving the luxury goods group a market capitalisation of €400 billion the first time and cementing its lead as Europe’s most valuable company.
Like other luxury companies which are heavily exposed to China, LVMH, owner of Christian Dior and Louis Vuitton, has benefited this year from the fast reopening of the world’s second biggest economy. However, some analysts said further gains in the share price could become harder to achieve.
“Let’s say I’m waiting for €500 billion to mark it down as a milestone,” said Angelo Meda, head of equities and portfolio manager at Banor SIM in Milan.
“They are firing their last cartridge which is the Chinese reopening. Going forward things will get tougher: tough comparisons, dollar going down,” he said.
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The shares rose as much as 0.4 per cent to a lifetime high of €795.70, which gave the group a market value slightly above €400 billion, according to Reuters calculations based on Refintiv data. They were trading fractionally above €800 towards the end of the session.
Earlier this month, LVMH chairman and chief executive Bernard Arnault reshuffled top management at the group, tightening his family’s grip with the appointment of his daughter, Delphine, to lead Christian Dior, and naming a new boss for Louis Vuitton. – Reuters
