Is LVMH a Buy After the Recent Dip or Just Catching a Falling Knife?

LVMH ($MC), the global luxury goods giant, has recently been hit hard, with its stock price taking another beating after its third-quarter results missed expectations. Growth forecasts have been adjusted downward, with JP Morgan lowering its target price from 720 EUR to 685 EUR. This has raised the question: Is this a great buying opportunity or just a case of catching a falling knife?

Nobody can predict the perfect time to buy, but when a strong business like LVMH is down 35% from its all-time high and sitting around a support level, we see potential value for long-term investors. If the stock price continues to drop, it could present an even better opportunity to accumulate more shares in a high-quality company. For those unfamiliar, LVMH owns 75 luxury brands, including Louis Vuitton, Dior, Kenzo, Bulgari, and even Princess Yachts—brands synonymous with luxury and resilience.

From a technical perspective, the 576 EUR level appears to be a solid support as the stock has bounced from that point before. If it breaks below this level, the next key support is around 517 EUR, and in a more bearish scenario, the price could drop as low as 415 EUR. However, long-term investors may see such declines as an opportunity to add more shares to their portfolios, especially with the company offering a 2% dividend yield. The ex-dividend date is December 2, so there’s still time to consider whether to buy before that cutoff.

Important Note: This is not financial advice. Always do your own research and consult with a financial advisor before making investment decisions. However, based on the current levels and the fundamentals of LVMH, we are buyers at these levels and ready to add more if prices dip further.

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