Oddo BHF maintains its 'outperform' rating on EssilorLuxottica shares, with its target price raised from €189 to €196.

The broker believes that growth should prove "robust" in Q4, and expects y/y cc growth of +6%, up from +5.2% in Q3.

"At this stage, we are maintaining our sales growth forecasts unchanged for 2024 (+4.9% cc) and 2025 (+5.3%). Our forecast for 2024, slightly below 5%, reflects a gloomy macro environment in Europe and the US, which should slightly curb growth if not really halt it", says the analyst.

Oddo BHF has also lowered its 2023 EBIT forecast by 1%, due to an EBIT margin in the 2nd half of 2023 that is likely to suffer from negative currency effects and cost inflation.

While the downward revision of our margin forecasts could weigh in the short term (our new forecasts are -3%/-4% below recent consensus), we believe that the Group's more defensive profile in the current context militates in favor of a visible erasure of the discount", concludes the research firm.

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