EssilorLuxottica Shares Drop 3.44% at Midday
Shares of the global optics leader fell by 3.44% this Friday at mid-session, dropping to 272.30 euros from 282 euros the previous day. This decline occurs amidst mixed analyst revisions and despite the announcement of a potential doubling of production for smart glasses in collaboration with Meta.
Current Trading Conditions
At 272.30 euros this Friday noon, EssilorLuxottica has lost 3.44% and is moving away from its 50-day moving average, which stands at 293.31 euros. However, the stock remains slightly above its 200-day moving average at 268.33 euros, a psychological level that acts as long-term support. The Relative Strength Index (RSI) is at 65, in the neutrality zone but still far from the oversold threshold of 30, suggesting that no immediate technical buy signal is generated. Over the past year, the group has still managed a 15.04% increase, although the short-term trend has been slowing for several sessions. Analysts have been active this week with several target revisions. On January 15, HSBC upgraded its buy recommendation with a target of 340 euros, representing a potential upside of 24.8% from the current price. Meanwhile, Kepler Cheuvreux set a new ambitious target at 350 euros. Conversely, BNP Paribas Exane lowered its target from 365 to 360 euros on January 14, while maintaining an outperform rating.
Strategic Expansion in Smart Glasses
Meta and EssilorLuxottica are currently discussing doubling the production capacity of Ray-Ban Meta smart glasses to reach 20 million units annually by the end of 2026, according to sources close to the matter. EssilorLuxottica is already nearing its initial goal of 10 million pairs set for the end of 2026, a sign of commercial success exceeding expectations. The two partners are even considering the possibility of increasing production to more than 30 million units if demand warrants it. This ramp-up project highlights the increasingly strategic role of smart glasses, which already accounted for more than a third of EssilorLuxottica's revenue growth in the third quarter of 2025. In this context, today's decline could reflect profit-taking after recent upward revisions, as well as an adjustment of high expectations in the smart glasses segment. Moreover, the group renewed its partnership with Burberry until 2035 in December and acquired the Belgian platform Signifeye, two operations that strengthen its foothold in innovation and specialized distribution.
