Analyst EPS Revisions
Erste Group Trims FY2026 EPS for Key European Giants Amid Mixed Broker Outlooks
Key Points
L’Oréal attracted a cluster of broker moves alongside the Erste downgrade, with Citigroup raising to Buy, Deutsche Bank cutting to Sell, Zacks Research downgrading to Hold, BNP Paribas Exane upgrading to Neutral, and Berenberg Bank upgrading to Buy.
Munich Re's coverage included a downgrade by Zacks to Strong Sell on June 17, while MarketBeat shows a Hold consensus; the company most recently posted quarterly earnings of $1.57 per share, beating the consensus estimate of $0.32 by $1.25.
LVMH saw upgrades from Zacks Research (Strong Sell to Hold) and Barclays (Hold to Strong Buy), with MarketBeat rating currently Buy.
Mercedes-Benz gained a Strong Buy upgrade from Jefferies Financial Group, with MarketBeat noting a consensus rating of Strong Buy.
Schneider Electric faced upgrades from Barclays (Overweight), Morgan Stanley (Overweight), and Berenberg (Strong Buy), with MarketBeat showing a Buy rating for SBGSY.
Erste Group Bank trimmed its FY2026 earnings-per-share estimates for five major European companies on June 25, 2026. The cuts were small but deliberate, covering L'Oréal, Munich Re, LVMH, Mercedes-Benz, and Schneider Electric, according to MarketBeat.
The revisions reflect a cautious near-term view from Erste analyst S. Lingnau, who cited rising operating costs and macroeconomic pressure in the Eurozone and China. Despite the cuts, several other brokers issued upgrades for the same companies in the same week — showing a sharp split in Wall Street opinion.
Erste Trims Five Names by Small but Meaningful Margins
Erste cut L'Oréal's 2026 EPS forecast to $3.11, down from $3.15, with a 2027 target of $3.36. LVMH fell to $5.03 from $5.09, with 2027 at $5.79. Mercedes-Benz dropped to $1.64 from $1.67, with 2027 at $2.11. These figures come from MarketBeat and Ticker Report.
Munich Re saw the smallest cut, moving to $1.14 from $1.15, with 2027 at $1.19. Schneider Electric slipped to $2.26 from $2.27, with 2027 at $2.64. Each revision was modest on its own — but together they signal a broad, cautious tilt across consumer, financial, automotive, and industrial sectors.
L'Oréal and LVMH Caught in a China Slowdown Debate
Erste's cuts for L'Oréal and LVMH come as both luxury giants face weaker demand in China. Analysts at Investing.com note that slowing Chinese credit data has raised red flags for premium sales in high-growth provinces that both brands rely on heavily.
Yet not everyone agrees. On June 24, Citigroup upgraded L'Oréal to Buy with a price target of €435, pointing to long-term growth from its Kering Beauty acquisition. One day earlier, Deutsche Bank cut L'Oréal to Sell, targeting €340, citing inventory buildup and a tough second half. Analyst Tom Sykes warned that channels are "full of inventory," per Investing.com.
Mercedes and Schneider Win Upgrades Even as Erste Cuts
Mercedes-Benz got a Strong Buy upgrade from Jefferies Financial Group on June 29. Jefferies pointed to a "cadence of product launches" and a solid margin outlook, according to Investing.com. MarketBeat's consensus for Mercedes now stands at Strong Buy — even as Erste's 2026 EPS estimate sits at just $1.64.
Schneider Electric also drew support from multiple brokers. Barclays and Morgan Stanley both rate it Overweight, driven by surging demand for AI data center infrastructure. Simply Wall St notes that Schneider's dividend is covered by both earnings at 57% and cash flows at 51%, giving investors a cushion despite the minor EPS trim.
Munich Re Beats Estimates but Faces a Zacks Downgrade
Munich Re stands out for a different reason. The company posted quarterly earnings of $1.57 per share — beating the consensus estimate of $0.32 by $1.25, per MarketBeat. That is a massive beat. Yet Zacks Research downgraded the stock to Strong Sell on June 17, citing structural disruption in the property-casualty insurance sector.
The gap between Munich Re's strong results and the bearish Zacks call shows how divided analyst opinion has become. Morningstar argues that Munich Re's specialty insurance model provides a "defensive cushion" against broader volatility. The MarketBeat consensus sits at Hold — a middle ground that reflects the ongoing debate, as reported by Ticker Report.
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