EssilorLuxottica Shares Drop Nearly 3% and Fall Below MM50
The Franco-Italian optical giant faces a sharp setback in the mid-afternoon, after several sessions of recovery. The stock is among the largest declines in the CAC 40, contrary to a stable Parisian index. A target price revision by a broker weighs on the session, while the partnership formed with Applied Materials the previous day was not enough to support the stock price.
The Stock Falls Below the MM50 Following a Revision by Intesa Sanpaolo
EssilorLuxottica's stock drops 2.91% to €178.20 during the session, while the CAC 40 gains 0.18%. The stock is among the largest declines in the index, just behind Orange. The decline follows the reduction of the target price by Intesa Sanpaolo from €323 to €278. The revised target still leaves a theoretical upside potential of over 55% compared to the current price.
The day's drop erases part of the recovery that began at the end of May, without threatening the MM20 at €176.09, which remains slightly below the price. However, the stock significantly falls back below the MM50 at €182.60, a benchmark only reclaimed a few days earlier. The MM200 at €246.06 remains out of reach, with the price about 27.6% below, reflecting the depth of the fundamental decline (-26.61% over one year).
Partnership with Applied Materials Struggles to Offset Sector Context
EssilorLuxottica and Applied Materials announced on June 16 a joint development agreement on optical systems for smart glasses and augmented reality. The alliance combines the group's expertise in lenses and frames with the American company's waveguide technologies, in a segment where Meta is also intensifying its initiatives. The session takes place in a loaded context: the FOMC concludes this Wednesday a meeting under the new chairmanship of Kevin Warsh, with a widely anticipated status quo.
In parallel, Chinese data released at the beginning of the week confirm sluggish consumption, the first decline in retail sales since late 2022—a weakness that weighs on European luxury and consumer goods players exposed to the Asian market. The RSI at 60 remains in neutral territory, with no signs of exhaustion. The technical support at €165.45 will be the next reference point if the selling pressure continues.
