EssilorLuxottica Shares Bounce Back in Late Afternoon Despite Tough Market Conditions
On Friday, January 30th, EssilorLuxottica's stock price rose by 1.69%, reaching 258.90 euros in the late afternoon. This rebound occurs as the optical giant has been under pressure for several weeks, with a decline of 18.66% over three months. However, today's session marks a technical respite after a period of tension.
Renewed Interest from Brokers
EssilorLuxottica has seen renewed interest from several brokers. On January 29th, Rothschild & Co Redburn reaffirmed its buy recommendation on the stock, raising its price target from 330 to 340 euros. This new target suggests a potential upside of over 31% from the current stock level. Additionally, on January 15th, Kepler Cheuvreux initiated coverage with a buy rating, setting an ambitious target at 350 euros. This latter figure even suggests a potential appreciation of 35% from today's trading levels. These positive expectations contrast with the recent downward trajectory of the Franco-Italian group, which is still significantly below its 50-day moving average of 282.74 euros.
Technical Indicators Show Mixed Signals
Technically, EssilorLuxottica shows mixed signals after several sessions of weakness. The Relative Strength Index (RSI), which measures price momentum, is at 22, a level that is significantly in the oversold zone indicating intense selling pressure over the past weeks. However, this setup suggests that a technical rebound could be possible in the short term, as the stock has been heavily neglected. The stock is also trading below its 200-day moving average, which is positioned at 269.16 euros, indicating a deteriorating underlying trend. The immediate resistance threshold is at 282 euros, a level that the stock must reclaim to begin a true recovery phase. On the downside, the support at 253.30 euros remains close and could act as a stabilizer in case of further corrections. The one-month volatility stands at 8.45, reflecting the fluctuations experienced by the stock in a turbulent market environment.
