LVMH stock stabilizes at €641 amid Deutsche Bank rating and price target hike

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LVMH stock stabilizes

Highlights

- LVMH stock is trading steadily at €641, supported by bullish technical signals and strong medium-term momentum.

- Deutsche Bank reaffirmed LVMH as a top pick and raised its price target to €715, citing a positive luxury sector outlook.

- Continued strength in Asian markets and leadership changes within the company further support the recovery narrative.

Investor confidence in LVMH has strengthened following a bullish sector outlook from Deutsche Bank, which reaffirmed the company as a “top pick” and raised its 2026 price target to €715. The bank cited improving macroeconomic dynamics and a likely rebound in high-end discretionary spending as key drivers of growth in the luxury segment. LVMH is seen as well-positioned to benefit from this trend due to its diversified portfolio and dominant position in fashion, leather goods, and selective retail. As part of its broader luxury assessment, Deutsche Bank also upgraded Richemont, underscoring a wider recovery thesis for the sector.

LVMH in particular has benefited from a resurgence in Chinese consumer demand, a key revenue driver that had been weakened by pandemic-era restrictions and muted economic recovery. A strong third-quarter performance reported in October, led by double-digit sales growth in Asia and resilience in the fashion and leather goods divisions, triggered a sharp 12% rise in share price and helped solidify its near-term uptrend.

However, risks remain. Currency fluctuations, particularly euro strength against the yuan and yen, could act as a headwind for revenue generated outside the Eurozone. In addition, higher interest rates in Europe and North America continue to weigh on consumer sentiment, particularly among aspirational buyers who form the lower end of the luxury market.

Technical analysis supports medium-term bullish trend

From a technical perspective, LVMH is holding above both its 50-day and 200-day moving averages, indicating that momentum has shifted back into bullish territory in the medium term. Recent trading volumes also support this trend, showing signs of steady accumulation following a broad sector-wide rebound. Immediate support is seen at €630, with more solid technical support near €610. Resistance levels appear around €660 and €700, with the €715–€720 zone emerging as a medium-term target should the current recovery continue.

Momentum indicators, including the RSI, are hovering in neutral-to-positive territory, suggesting further upside potential without immediate risk of overbought conditions. Bollinger Bands have widened slightly over the past two weeks, reflecting a modest uptick in volatility as investor attention returns to the luxury sector.

LVMH stock price dynamics (October 2025 - December 2025). Source: TradingView

In addition, the MACD (Moving Average Convergence Divergence) has recently crossed above its signal line, reinforcing the current bullish bias. This crossover is often interpreted as a buy signal, particularly when confirmed by positive price action and supportive volume trends. While the short-term outlook remains constructive, a break above the €660 resistance zone with strong volume would be needed to validate further upside toward the €700–€715 area in the coming weeks.

Modest upside toward €700 if momentum sustains

LVMH appears technically and fundamentally well-positioned to extend gains over the coming months, provided macroeconomic conditions remain broadly supportive. In the base case scenario, the stock is likely to test the €660–€680 range by Q1 2026. Sustained earnings strength and continued sector momentum could drive a breakout toward Deutsche Bank’s €715 target by mid-2026.

In a bullish scenario, strong holiday season sales across key regions and an acceleration in Chinese luxury demand could drive a retest of the 2023 highs near €760–€770. This would require continued broad-based recovery and no significant deterioration in global demand or financial conditions.

LVMH will invest up to €150 million in Le Parisien to stabilize its finances and signal a long-term commitment to the newspaper. The move follows internal concerns over editorial independence and rumors of a potential sale, with the funding seen as a step to retain ownership and protect neutrality.

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