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EssilorLuxottica stock rating upgraded by Rothschild Redburn on growth potential

Published 17/09/2025, 07:38
EssilorLuxottica stock rating upgraded by Rothschild Redburn on growth potential
ESLX
-0.29%

Investing.com - Rothschild Redburn upgraded EssilorLuxottica SA (EPA:EL) (OTC:ESLOY) from Neutral to Buy on Wednesday, raising its price target to EUR320.00 from EUR235.00, representing 21% potential upside.

The upgrade reflects EssilorLuxottica’s "unrivalled position in the vision care market" and its expansion into new categories including myopia management (Stellest), audiology (Nuance), and smart glasses (Meta).

Rothschild Redburn believes the company can achieve sustainably higher growth by leveraging its strong brand identity and extensive distribution network to enter these new verticals, despite some near-term margin pressure.

The research firm projects that EssilorLuxottica’s enhanced scale and improving price/mix could drive margins to expand to 20% by fiscal year 2030, supporting a 14.8% EPS CAGR from fiscal years 2025-2028.

Rothschild Redburn has meaningfully upgraded its mid-term revenue and organic growth forecasts for the company, justifying a premium valuation based on its structural advantages in the optical market and growth potential from new market entries.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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