Barclays says European beauty remains attractive, but flags challenges ahead
** Barclays says growth in the European beauty sector remains robust, but warns certain challenges cloud the industry's once-clear success formula for global manufacturers
** It says the beauty industry is at an interesting cross-roads where success depends on brand longevity, originality, quality and continuous reinvention
** Changed consumer habits mean companies cannot rely on traditional customer models based purely on demographic differences, it adds
** Barclays downgrades L'Oréal 
OR to "underweight", saying its outperformance is waning and barriers to enter the market are lower
** It also cuts hygiene products maker Essity 
ESSITY_A to "underweight" on an expected moderation of growth in Q2
** Rabanne perfume owner Puig 
PUIG also faces softening Q2 growth, the broker says, cutting it to "equal weight"; adds the company's EMEA region growth will likely remain lower for the rest of 2025
** Barclays upgrades Persil owner Henkel 
HEN to "overweight", saying the comparison base will get easier with innovation coming in H2 alongside less U.S. destocking
