JPMorgan has adjusted its stance on LuxExperience (NYSE:LUXE), lowering the stock to Neutral from Overweight and reducing its target price to $10 from $14. The firm attributed the move to a corrected fully diluted share count disclosed by LuxExperience management, which JPMorgan says materially alters per-share equity value under its prior valuation assumptions.
Under JPMorgan’s earlier valuation approach using roughly 6.5 times EV/EBITDA, the updated share count translates into about a $5 per share reduction in equity value. The bank’s new December 2026 price target of $10 is nevertheless based on an 8 times multiple applied to an unchanged calendar year 2027 EBITDA estimate of €117 million.
InvestingPro data cited alongside the firm’s note shows LuxExperience trading at just 1.56 times EV/EBITDA, a multiple that sits well below the framework JPMorgan used in its prior analysis. InvestingPro also reports a P/E ratio for LUXE of 2.19 and assigns the company an overall financial health rating of "GREAT." These metrics have led some data providers to flag potential undervaluation on a Fair Value basis despite the share-count adjustment.
The only modification JPMorgan says it made to its model was to increase the fully diluted share count following management’s correction to a second-quarter 2026 press release. That adjustment lifts the company’s outstanding shares to about 140 million from the roughly 87 million JPMorgan previously used, producing a new risk/reward band of $6 to $11 per share compared with the prior $10 to $18 range.
JPMorgan’s valuation framework applies a 4 times to 9 times EBITDA range derived from linear regression against peers, and the firm’s current December 2026 target reflects an 8 times multiple on the unchanged 2027 EBITDA forecast. Market capitalization stands at $1.41 billion. On the balance sheet, LuxExperience is reported to hold more cash than debt and to maintain a current ratio of 2.12.
In communicating the change, JPMorgan analyst Matthew Boss said the corrected share count produces a more balanced risk/reward profile, even as the firm continues to see execution against LuxExperience’s medium-term targets and potential to capture additional market share in online luxury.
Other data points included by InvestingPro emphasize recent operational momentum: the stock has returned 23.29% over the past six months. The data service’s Fair Value assessment and financial-health metrics are highlighted alongside JPMorgan’s note as part of the broader picture investors are weighing.
LuxExperience’s own reported results provide context for the coverage changes. The company reported Q2 2025 earnings with an EPS of -0.05, beating an expected -0.07 by 28.57%. Revenue in the quarter reached €646.92 million, narrowly topping the €645.98 million consensus figure.
Separately, JPMorgan previously moved LuxExperience from Neutral to Overweight and raised a prior price target to $14 from $9 after investor meetings with CEO Kliger in which the company’s multi-year growth strategy was discussed. At that time, the bank also increased its fiscal year 2026 adjusted EBITDA estimate to €11 million, ahead of the then-current Street consensus of -€10 million. Those items are part of the record of the analyst firm’s evolving view but the most recent change centers on the share-count correction and its impact on per-share valuation.
The firm’s recalibration illustrates how a single accounting or reporting update - in this case the fully diluted share tally - can meaningfully shift analyst-derived per-share targets even when core operating projections and peer-relative valuation bands remain unchanged.
Investors tracking LuxExperience will need to balance JPMorgan’s revised per-share calculus with the company’s reported margin of safety on the balance sheet, low reported trading multiples, and recent positive price performance.