EssilorLuxottica Leads the CAC 40 as HSBC Upgrades to Buy
EssilorLuxottica posted the strongest gain on the CAC 40 index this Wednesday on the Paris Stock Exchange after HSBC upgraded its recommendation on the eyewear group to "buy," up from its previous "hold" rating.
In a report focused on the smart glasses market, HSBC stated that it has raised its price target for the stock from €300 to €340, representing an upside potential of approximately 13%.
Even though many brands are now eager to enter the smart glasses segment, EssilorLuxottica, thanks to its partnership with Meta, has a head start in this field. The launch of their first connected Ray-Ban glasses dates back to 2021, when the market was still in its infancy, the broker notes.
Beyond the technical credibility of their collaboration and the stylish design of their products, the glasses are available through a broad network of optical stores, leveraging EssilorLuxottica's distribution channel, which facilitates sales, the broker emphasizes in its note.
As a result, HSBC points out, EssilorLuxottica surprised investors in the third quarter of 2025 by posting double-digit revenue growth (+11.7% on a constant currency basis), whereas its growth had previously been rather moderate, hovering around a few percentage points.
With smart glasses now accounting for a growing share of business—currently around 4% of revenue—the analyst has revised its growth forecasts upward, now expecting like-for-like growth of 9.6% in 2025, followed by an increase of 15.6% in 2026.
Following these favorable comments, EssilorLuxottica shares rose 2.3% by midday Wednesday, compared to a 0.2% gain for the CAC 40 index.
EssilorLuxottica is a global leader in the design, manufacture and distribution of ophthalmic lenses, frames and sunglasses. Formed in 2018, the company brings together the complementary expertise of two industry pioneers, one in advanced lens technology and the other in the craftsmanship of iconic eyewear, to set new industry standards for vision care and the consumer experience around it. Influential eyewear brands including Ray-Ban and Oakley, lens technology brands including Varilux® and Transitions®, and world-class retail brands including Sunglass Hut and LensCrafters are part of the EssilorLuxottica family.
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