On August 7, | UBS published a research report stating that L'Occitane's brands Elemis and Sol de Janiero (SDJ) have a wide range of products and strong growth after the acquisition, profitability is higher than the group's core brands, so it is expected that their growth plan will be successful. The bank gave L'Occitane a “buy” rating for the first time, with a target price of HK$28.2. The stock's current valuation is equivalent to 17.5 times the predicted price-earnings ratio, a significant discount of 56% from the global peer average, and one standard deviation lower than the ten-year average forecast price-earnings ratio, mainly due to excessive market concerns about its ability to meet mid-term sales and operating margin targets. UBS believes that the group's multi-brand development is on track. It is expected that the group will reach the revenue target of 3 billion euros in FY2026, while the sales contribution of core brands is expected to drop to 53% at that time. It is also expected that the group's overall operating profit margin for FY2026 will expand to 14.8%, 1.2 percentage points lower than the company's target, but in line with market expectations, because the bank expects that L'Occitane needs to increase marketing expenses to drive revenue growth, but it may suppress profit margins.