Luxury Stocks Hit Three-Month Low as Analysts Warn on Valuations

As Europe’s luxury-goods stocks get off to a shaky start to 2026, some analysts are warning that the sector’s recent rally has left valuations looking inflated.

Morgan Stanley downgraded LVMH to equal-weight on Monday, saying both tariffs and currency fluctuations could weigh on earnings this year. Meanwhile, Bank of America Corp. analysts said much of a recovery that is about to unfold is already priced in to the sector.