L'Occitane International SA
00973: XHKG (HKG)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
HK$54.00 | Bssjk | Xgynkjcy |
L'Occitane's Long-Term Outlook Remains Attractive; Maintaining FVE at HKD 36.60; Shares Undervalued
We maintain our fair value estimate at HKD 36.60 after narrow-moat L'Occitane reported fiscal 2023 first-half (ended Sept. 30, 2022) results broadly in line with our estimates. Management maintained medium-term guidance but set a cautious tone on near-term growth in China. We view L'Occitane's shares as undervalued, trading at a 40% discount to our fair value estimate as of the close of business on Nov. 29, and 13 times fiscal 2024 PitchBook consensus earnings.