EssilorLuxottica Shares Rebound 2% Despite UBS Cutting Target to €315
EssilorLuxottica gains over 2% this Tuesday mid-session, trading at €201.20 in an overall buoyant Paris market. This rebound occurs as the stock remains down more than 27% over three months, and UBS has just lowered its price target on the stock.
UBS Lowers Price Target but Maintains Buy Recommendation
On April 14, UBS reduced its price target on EssilorLuxottica from €347 to €315, while maintaining its buy recommendation. At the current price of €201.20, this revised target still implies a potential revaluation of over 56%, indicating that the Swiss bank views the recent decline as excessive. The release of the first quarter 2026 revenue on April 22 will be a crucial test to assess the commercial momentum of the Franco-Italian optical and eyewear giant. The general meeting will follow on April 28. In a mixed sector context, high-end consumer stocks listed in Paris are showing divergent trajectories this Tuesday: L'Oréal is up by 0.66%, while LVMH is down by 1.72%. The CAC 40 is up by 0.60% during the session, supported by a favorable tone on major global exchanges.
Technical Indicators Show Underlying Downtrend
Despite today's rebound, EssilorLuxottica's technical indicators show a fundamentally deteriorated trend. The price of €201.20 remains significantly below the 50-day moving average (€221.08) and even more so below the 200-day average (€262.20), indicating a firmly entrenched downward trajectory for several months. The RSI, at 41, is in a low neutral zone without indicating any clear overselling, but reflects still dominant selling pressure. Regarding Bollinger Bands, the stock is moving in the upper part of its channel, at 74% between the lower bound (€188.62) and the upper bound (€205.71). The proximity of this upper bound could hinder short-term progress, with the most immediate resistance threshold at €225.20. In case of a further decline, the support identified at €190.20 will act as a line of defense. Over seven days, however, the stock has shown a recovery of 5.2%, indicating that buying pressure is manifesting after a quarter of significant correction.
