JPMorgan Analysts See Investment Opportunities in European Beauty Stocks
JPMorgan analysts noted that the global beauty market is still under pressure after a weak first half of 2025. However, they identified several European beauty stocks as attractive opportunities heading into the second half of the year.
“The global beauty segment stayed subdued, with most companies reporting disappointing revenue, showing that demand challenges remain,” JPMorgan said.
The bank expects global beauty growth to remain below historical averages at around 3%, though it forecasts a gradual recovery in demand, particularly from China and the United States. Still, analysts warned that the outlook is mixed, citing risks of U.S. inventory reductions and stronger competition in China, while Western Europe could slow further.
Despite the difficult market backdrop, JPMorgan pointed to stock-specific opportunities. Beiersdorf was highlighted as offering one of the strongest risk/reward profiles into the second half, trading at a valuation of 21x PE26E (16x ex-cash) and 9x EV/EBITDA26E.
The bank also reaffirmed its positive stance on Unilever, emphasizing ongoing strategic changes in its portfolio. JPMorgan noted that Unilever’s increased focus on Beauty and Personal Care could create long-term value for investors.
As for L’Oréal, analysts praised its solid first-half performance, calling it a “must-own” stock in a challenging reporting season. However, they cautioned that consensus expectations for the second half may be too high, as beauty demand remains subdued.
