Jefferies cuts L'Oreal citing 'less impressive' margin outlook

** Jefferies downgrades French cosmetics giant L'Oreal OR to "underperform" from "hold", citing normalisation in the beauty market and a less impressive margin outlook

** The brokerage says L'Oreal's growth will moderate to about 4.5% as the global beauty category reverts to its historic about 4% growth norm following the end of the China boom

** Jefferies adds that the company's "virtuous cycle" of margin progression is deteriorating, stating "the quality of that progress will be less impressive & less supportive of valuation"

** Reflecting the more cautious outlook, the broker cuts its FY 2027 EPS estimates by 3%; lowers its PT by 8% to EUR 340

** Out of 27 analysts covering L'Oreal, nine rate it "strong buy"/"buy", ​13 "hold" and five "strong sell"/"sell"- LSEG data