EssilorLuxottica Gains 2.73% Boosted by Plans to Double Production with Meta
EssilorLuxottica rose by 2.73% to 285.60 euros following the announcement of discussions with Meta to double the production capacity of Ray-Ban Meta glasses to 20 million units per year by the end of 2026, and HSBC's upgrade of its recommendation to buy with a target raised to 340 euros.
Stock Performance and Market Analysis
EssilorLuxottica's stock recorded a 2.73% increase on Wednesday, January 14th at the opening, with a price setting at 285.60 euros compared to 278 euros the previous day. The traded share capital remained limited to 0.03%, indicating activity without massive flows. This rise is part of a favorable short and medium-term dynamic, with a weekly performance of 3.03% and an annual increase of 22.37%. Technically, the stock is approaching the upper limit of the Bollinger Bands at 283.39 euros, signaling a resurgence of momentum after several weeks of hesitation. The neutral RSI at 54 suggests that the stock is neither in an overbought nor oversold zone, potentially allowing the upward movement to continue. The positive MACD histogram at 1.93 confirms this constructive dynamic, illustrating a gradual strengthening of the short-term trend.
Strategic Developments and Analyst Upgrades
HSBC upgraded its recommendation on EssilorLuxottica from hold to buy on Tuesday, while raising its price target from 300 to 340 euros. This change comes in a context where analysts are revising their outlook on the stock, following a series of adjustments last week by several major banks. Meta and EssilorLuxottica are exploring the possibility of doubling the production capacity of their connected Ray-Ban Meta glasses, driven by exceptionally strong demand. Meta has suggested increasing the annual production capacity to 20 million units or more by the end of 2026, while discussions are focusing on a target of 20 million units per year, potentially up to more than 30 million depending on market conditions. This announcement comes just days after Meta suspended the international rollout of Ray-Ban Display glasses in France, Italy, the UK, and Canada due to limited stocks amid exceptional demand in the US. The commercial success of the partnership with Meta is a major catalyst for the group, strengthening its position in the emerging market of AI-powered connected glasses. The stock now fluctuates between a support at 263.40 euros and a resistance at 308.80 euros, suggesting a technical progression margin if the dynamic is confirmed.
