Italian-French company EssilorLuxottica SA (FR:EL) continued its share price momentum ahead of its earnings next week on July 25. The company also received two Buy rating confirmations from analysts yesterday. The company’s shares have gained more than 5% YTD.
Analysts’ View
Analysts believe EssilorLuxottica is a dominant player in the global eyewear market and is expected to exhibit further outperformance in both the short and near term.
Yesterday, Louise Singlehurst from Goldman Sachs reiterated his Buy rating on the stock at a price target of €190. This implies a modest increase of 7.5% in the share price.
Similarly, J.P. Morgan analyst Chiara Battistini confirmed his Buy rating on the stock, predicting a higher growth of 21% in the share price.
The company started the year 2023 with higher sales in its first quarter, driven by its performance in Asia-Pacific, especially the recovery in China. For 2023, the company anticipates substantial future growth driven by a reversal in China, as well as the introduction of new products and the expansion of sales channels.
Analysts also expect that this recovery will continue for luxury brands despite the impact of higher prices and global market instability. For its Q2 2023 earnings, analysts forecast an EPS of €3.53 per share, as compared to the EPS of €2.64 per share reported in the same quarter a year ago. The expected sales for the quarter are €6.62 billion.
What is the Target Price for EssilorLuxottica Stock?
According to TipRanks, EL stock has a Moderate Buy rating based on recommendations from 10 analysts. It includes six Buy, three Hold, and one Sell ratings.
The average price target is €197, which shows a change of 11.4% from the current trading price. The price target ranges from a low forecast of €160 to a high forecast of €220.
