EL: Expansion Into New Markets And Technology Will Shape Near-Term Outlook

Analysts have raised their price target for EssilorLuxottica Société anonyme from €308.70 to €312.20. This increase is attributed to recent upward revisions by several firms in response to the company’s strong competitive position and increased growth outlook.

Analyst Commentary

Recent street research highlights a series of positive reassessments for EssilorLuxottica Société anonyme, with a consistent trend toward higher price targets and improved ratings. Analysts have responded to the company's strong performance and strategic positioning by adjusting their outlooks upward.

• Bullish analysts cite EssilorLuxottica's unrivalled position in the structurally attractive optical market as a factor contributing to its growth potential and ability to sustain market leadership.
• Valuation adjustments have been driven by the company's expansion into new markets, which is expected to create higher growth trajectories and reinforce its global scale.
• The company’s vertical integration and presence across both wholesale and retail channels are viewed as providing a robust competitive moat. This is seen as helping to protect margins and drive profitability.
• New growth opportunities in areas such as lens differentiation, wearables and medical technology are identified as key catalysts for future share price appreciation.

What's in the News

• EssilorLuxottica announced the evolution of its Essilor Stellest platform at the China International Import Expo, introducing Stellest 2.0 lenses. These lenses provide significantly higher efficacy in slowing myopia progression in children. The rollout is expanding in Greater China, with global expansion planned for 2026 (Key Developments).
• The company introduced Essilor Stellest plano pair lenses, offering a preventive solution for children at risk of developing myopia. Clinical research supports delayed onset and slower axial elongation (Key Developments).
• Essilor Stellest Smartglasses, equipped to track wearing time and provide behavioral insights for effective myopia management, will launch in Mainland China in early 2026 (Key Developments).
• The U.S. FDA granted market authorization for Essilor Stellest lenses via the De Novo pathway. This makes them the first FDA-authorized spectacle lens clinically proven to slow myopia progression in children. The U.S. rollout is imminent following international success (Key Developments).
• EssilorLuxottica and Meta Platforms unveiled the next generation of AI glasses, including Oakley Meta Vanguard and Ray-Ban Meta (Gen 2), featuring enhanced cameras, improved battery life, and advanced audio capabilities. Availability will expand to new markets in 2026 (Key Developments).

Valuation Changes

• Consensus Analyst Price Target has risen slightly from €308.70 to €312.20, reflecting increased confidence in the company's outlook.
• Discount Rate has increased moderately from 6.94% to 7.20%, indicating a slightly higher perceived risk or cost of capital.
• Revenue Growth estimates have edged up from 7.19% to 7.31%, suggesting marginally stronger sales expectations.
• Net Profit Margin forecasts have decreased marginally from 11.23% to 11.21%.
• Future P/E (Price to Earnings) ratio has increased from 47.48x to 48.32x, indicating a higher valuation multiple on expected future earnings.