EssilorLuxottica Stock Enters Oversold Territory After a 29.5% Drop Over Three Months
EssilorLuxottica fell by 1.8% this Thursday, to 190.45 euros, in a Paris market weighed down by geopolitical tensions in the Middle East. The stock now shows a nearly 29.5% decline over three months, while Barclays revised its price target downwards today.
Breaking Below Support Levels
The share price of EssilorLuxottica has fallen below the support threshold of 192.85 euros, a level that had previously served as a short-term reference floor. This downward breach occurs as the RSI, a momentum indicator measuring overbought or oversold conditions, registers at 28, well below the generally considered oversold signal threshold of 30. The stock is also significantly below its 50-day and 200-day moving averages, positioned at 228.94 and 263.46 euros respectively, confirming a bearish trend established over several months. During the session, the CAC 40 dropped 1.25% and the SBF 120 fell by 1.26%, amid increased volatility due to escalating hostilities between Washington and Tehran. Among comparable large caps, LVMH lost 1.14% and L'Oréal 0.38%, illustrating the selling pressure on the heavyweights of the Paris stock exchange.
Barclays Adjusts Price Target
Barclays adjusted its price target on EssilorLuxottica this Thursday, lowering it from 355 to 320 euros, while maintaining an 'overweight' recommendation. Even after this revision, the British bank's target implies a potential revaluation of about 68% compared to the current price of 190.45 euros, a considerable gap that reflects the discount accumulated by the stock in recent months. Operationally, the group announced on Monday the launch of a new line of Ray-Ban Meta connected glasses with corrective lenses, a result of its partnership with Meta in embedded artificial intelligence. This expansion into the optical segment represents a strategic growth lever for the joint venture. The next major event for shareholders is scheduled for April 22, the date of the first quarter 2026 revenue release, followed by the annual general meeting on April 28.
