Stifel maintains its Buy rating on EssilorLuxottica shares, with a price target reduced from €210 to €201.

With the company due to publish its annual results on February 14, Stifel has revised its earnings estimates downwards by around 5%.

In addition, the broker confirms its estimate of 5% organic sales growth in Q4 2023 for the group (versus 6% for the consensus).

EssiLuxottica remains an attractive proposition, but marginal performance in 2023 has deviated sharply from the implied margin trajectory from 2021 to 2026. We now forecast an organic EBIT margin of 18.4% in 2026 (versus 19.1% previously), which is below the forecast range for 2026 (19.0-20.0%)', the research firm concludes in substance.

Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.