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Investing.com - Barclays initiated coverage on EssilorLuxottica SA (EPA:EL) (OTC:ESLOY) with an Overweight rating and a price target of EUR305.00 on Wednesday.
The investment bank described the eyewear giant as a "quality compounder at the intersection of healthcare and consumer luxury" with potential for approximately 6% annual growth.
Barclays highlighted the company’s vertical integration and market-leading positions across wholesale and retail segments as providing a "robust competitive moat" in the industry.
The firm pointed to exposure to high-growth verticals as presenting a "powerful growth narrative" over the medium term, specifically in wearables, lens differentiation, and MedTech.
Barclays supported its analysis with a global optometrist survey, proprietary patient and revenue models, credit card data analysis, and key opinion leader feedback, concluding that EssilorLuxottica’s "attractive growth runway" justifies a premium valuation compared to peers.
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