The publication of a bullish new analyst note was all the news LVMH Moët Hennessy (LVMUY 2.85%) stock needed to cruise to a satisfying gain on Thursday. That note, which laid out a strong buy case, helped propel the luxury-goods purveyor’s share price almost 3% higher, comparing quite favorably to the 0.2% bump of the benchmark S&P 500 index on the day.

A bull weighs in

Well before market open, TD Cowen’s Oliver Chen reiterated his buy recommendation and price target of 700 euros ($755) per share of LVMH’s Europe-listed stock.

According to reports, Chen is particularly encouraged by the company’s strong brand portfolio, which consists of some of the most desirable luxury products available. He also looks forward to LVMH introducing more modestly priced new goods to appeal to the aspirational customer segment.

Although the analyst is an LVMH bull, he did address the challenges faced by the company. China continues to be an issue, as its slowing economic growth has curbed consumer appetites for high-end products. The U.S. is a resilient market, but when compared to the massive Asian nation, luxury-consumption and market-penetration rates are low.

Down but certainly not out

Chen’s latest LVMH analysis comes barely one week after the company provided investors with a revenue update. This revealed that overall sales were down by 3% year over year in its third quarter, driven mainly by softer Chinese demand. That wasn’t the only source of weakness: Management said that lower economic growth in neighboring (and affluent) Japan contributed to the overall decline.

Still, as Chen pointed out, LVMH is relatively cheap on its valuations and its brand power remains strong. As such, I wouldn’t count out the company. In fact, it might just be quite a good discount play at this moment.