L'Oréal’s Mastercard Partnership Might Change The Case For Investing In L'Oréal (ENXTPA:OR)

• Over the past week, L'Oréal has rolled out major Black Friday 2025 promotions on popular products like Lumi Glotion, introduced its new Glycolic Gloss haircare range, and partnered with Mastercard to launch a business credit card for beauty professionals in Latin America.
• An interesting development is L'Oréal's recognition as a 2025 holiday leader in social influence, underscoring its strong engagement with creators and effective digital brand strategies.
• We'll now assess how L'Oréal's targeted financial inclusion partnership with Mastercard might influence its longer-term investment outlook.

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L'Oréal Investment Narrative Recap

L’Oréal’s investment story is anchored in its ability to deliver innovation and steady expansion across global beauty markets, balancing growth in emerging economies with ongoing product launches and digital engagement. The latest Black Friday promotions, new Glycolic Gloss haircare range, and Mastercard partnership support this strategy, though the impact on the most immediate catalyst, emerging market volume growth, appears incremental. The core risk remains intensifying competition from digital-native and local brands, especially in trend-sensitive markets like China. The recently announced partnership with Mastercard to launch a dedicated business credit card for beauty professionals in Latin America stands out as the most relevant to current catalysts, aiming to strengthen L’Oréal’s market position by fostering digital payments and financial inclusion where cash still dominates. This move aligns with the company’s pursuit of accelerated growth in emerging markets, a central theme for near-term performance. Yet, it’s important for investors to remember the flip-side: while expansion in fast-growing regions can fuel upside, the threat from agile indie and local competitors…

Read the full narrative on L'Oréal (it's free!)

L'Oréal's narrative projects €50.7 billion in revenue and €8.0 billion in earnings by 2028. This requires 5.0% yearly revenue growth and an increase in earnings of €1.9 billion from €6.1 billion today.

Uncover how L'Oréal's forecasts yield a €387.55 fair value, a 3% upside to its current price.

Exploring Other Perspectives

Six fair value estimates from the Simply Wall St Community range from €285.96 to €387.55 per share. With competition from digital-first and local beauty brands of increasing concern, you may want to explore these varied viewpoints for a fuller picture.

Explore 6 other fair value estimates on L'Oréal - why the stock might be worth 24% less than the current price!

Build Your Own L'Oréal Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your L'Oréal research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free L'Oréal research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate L'Oréal's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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