Shares in luxury goods major LVMH (LVMH.PA) fall 1.5 percent, featuring among the worst performers on France's CAC 40 index .FCHI, after Credit Suisse downgrades its recommendation on the stock to "neutral" from "outperform", citing valuation.
"Favourable sector news-flow looks to us largely priced in and we see limited scope for material consensus upgrades for now," Credit Suisse analysts write in a note.
"Attractive long-term story but limited near-term upside: Louis Vuitton's strong competitive position, ownership of leading brands with global scalability and attractive exposure to emerging markets are the main reasons we like the stock in the long run. But after their recent re-rating, we believe that such positives -along with a near-term rebound in wholesale- look baked in the shares."
Reuters Messaging rm://email@example.com