EssilorLuxottica Shares Bounce Over 3% Attempting to Exit Downtrend Channel

Rothschild & Co Redburn Upgrades to Buy, Providing Breathing Room for the Stock

EssilorLuxottica shares are up 3.21% at €175.20, ranking among the top gainers in the CAC 40 at midday. The move is supported by Rothschild & Co Redburn's upgrade to 'buy,' although it has lowered its price target from €310 to €260. The new target suggests a theoretical potential of about 48% relative to the current price. This recommendation revision comes as the stock continues to be heavily penalized over time: down 18.28% over three months and 28.4% over a year. The session also benefits from a supportive Parisian market environment, with the CAC 40 up nearly 1% and the VIX down to 15.77. On the corporate front, the group announced on June 1st the issuance of 957,954 new shares related to the payment of the 2025 dividend in stocks.

The Stock Moves Above its 20-Day Moving Average but Remains Far from Longer Averages

Today's rebound allows the price to move above the 20-day moving average, which is at €172.91 (+1.32% difference). However, the medium and long-term configuration remains unfavorable: the 50-day moving average at €185.40 and especially the 200-day moving average at €250.10 still cap the stock, with the price trading nearly 30% below its 200-day average. The RSI at 38 indicates a still weak momentum, without a clear recovery. The technical support at €165.45 (tested at its lowest in May near €162.50) remains the reference low zone, while resistance is far above, at €201.50. For reference, during the session on May 12th, the price had dropped to €162.50 during the session, marking its lowest point since 2023. Confirmation of an upward exit from the spring's bearish channel remains to be seen in the coming sessions.