Jun. 19 at 8:08 PM
Barclays believes the recent selloff in European consumer staples has been driven more by valuation compression than earnings deterioration, creating attractive opportunities as earnings downgrades ease and consumer demand shows signs of stabilization.
The broker favors companies with resilient earnings and discounted valuations. L’Oréal stands out for its strong profit profile, premium positioning, and long-term exposure to structural beauty market growth. Danone is viewed as one of the clearest re-rating opportunities after a sharp valuation reset despite only modest earnings cuts. Unilever remains attractive thanks to resilient earnings expectations and its diversified global portfolio.
Barclays also highlights Carlsberg, whose share price decline appears disconnected from stable earnings estimates, and Pernod Ricard, where much of the negative outlook may already be priced in.
$LRLCY $UL $DANOY