JPMorgan moved LuxExperience (NYSE:LUXE) from a Neutral rating to Overweight on Thursday and raised its price target to $14.00, up from $9.00. The firm said the change followed investor meetings in New York City with LuxExperience CEO Kliger, where the company's multi-year growth strategy was discussed.
Following those meetings, JPMorgan revised its adjusted EBITDA forecasts materially. The bank now expects LuxExperience to post adjusted EBITDA of 026 of 026 of 1 million for fiscal year 2026 - a figure that exceeds the current Street consensus of -0 million. For fiscal year 2027, JPMorgan's projection rises to 073.2 million, a figure more than double the consensus estimate of 030.8 million.
JPMorgan noted that CEO Kliger confirmed the company is on track to reach its multi-year target of 7-9% EBITDA margins by fiscal year 2029. In the bank's model, LuxExperience's adjusted EBITDA margin improves from 0.4% in fiscal 2026 to 2.7% in fiscal 2027, which aligns with management's stated near-term margin objective of 1-4% adjusted EBITDA margins.
The firm also highlighted a potential strategic tailwind in the luxury segment: JPMorgan estimates approximately $1-2 billion of consolidation opportunity within the luxury sector that could be incremental to management's multi-year plan for 10-15% top-line growth. That consolidation opportunity was described as "up for grabs" and could supplement organic expansion plans if pursued.
JPMorgan derived its new $14 price target using a multiple of 6.5x on its calendar year 2027 EBITDA estimate. The bank described a near-term risk/reward range for the equity stretching from $10 to $18. It also referenced a potential "second-leg execution" equity value opportunity that could push implied valuations above $20 when benchmarked against technology and e-commerce peers.
Separately, LuxExperience BV DRC released Q2 2025 results that modestly outperformed expectations. Reported earnings per share were -0.05, which the company said exceeded analyst estimates of -0.07 by 28.57%. Revenue came in at 0646.92 million, narrowly ahead of the expected 0645.98 million. The earnings call did not include any discussion of mergers or acquisitions, and analyst firms had not issued upgrades or downgrades in the immediate aftermath of the release.
Investors tracking LuxExperience can point to JPMorgan's upgraded rating and higher EBITDA forecasts as a signal of growing confidence from one sell-side institution, alongside modest beats in the latest reported quarter. At the same time, the firms valuation assumptions, the stated risk/reward band, and the absence of analyst follow-up actions underline remaining near-term uncertainties.