EssilorLuxottica slides as Goldman Sachs trims price target
EssilorLuxottica shares are among the steepest decliners on the CAC 40 in Paris on Thursday morning after Goldman Sachs lowered its price target, citing a cooling organic growth outlook for the eyewear giant. As of 10:30 AM, the stock is down 2.3% at 196 euros, following a rebound of more than 5.5% yesterday. Meanwhile, the CAC 40 is trading down approximately 0.8%.
In a research note, Goldman Sachs indicated it has reduced its 12-month target on the stock from 235 to 215 euros after adjusting its earnings forecasts and updating its valuation methodology.
For the first quarter of 2026, the U.S. investment bank expects constant-currency revenue growth of 10.5%, compared to a consensus of +11%, split evenly between traditional business lines and AI-equipped eyewear. This would represent a deceleration from the 18.4% growth recorded in the fourth quarter of 2025.
Valuation deemed attractive following recent pullback
The New York-based firm, which nevertheless expects smart glasses sales to climb to 3.9 billion euros this year from 1.7 billion in 2025, believes the stock's valuation remains undemanding given these prospects and the recent compression of its P/E ratio, which has fallen from 35x to 25x since the start of the year.
Consequently, Goldman maintains its "Buy" rating on the stock.
EssilorLuxottica is scheduled to report its first-quarter revenue on Wednesday, April 22.
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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