EssilorLuxottica Stock: Shares Break Down Support and Lose Over 24% in Three Months
EssilorLuxottica continues its slide this Tuesday, with its share price falling by 1.53% to 232.40 euros at midday, dropping below the technical threshold of 233 euros. The Franco-Italian optical giant now shows a decline of more than 5% over a week and 24% over three months, amid persistent selling pressure.
Analyst Downgrade Amidst Yearly Decline
The day before, BNP Paribas Exane lowered its price target on EssilorLuxottica from 365 to 340 euros, while maintaining its 'outperform' recommendation. This revised target implies a potential revaluation of around 46% compared to the current price of 232.40 euros, indicating a significant gap between market valuation and the research firm's estimate. This adjustment comes as the stock has lost more than 20% over the past year, falling from about 291 euros to its current level. The release of the first quarter revenue on April 22 will be a crucial event to assess the group's business momentum. The general meeting will follow on April 28, and the semi-annual results will be revealed on July 28.
Technical Breakdown in Tuesday's Session
Technically, this Tuesday's session marks a notable moment for EssilorLuxottica: the share price of 232.40 euros now moves below the support level identified at 233 euros, which nearly coincides with the lower boundary of the Bollinger Bands at 233.43 euros. This downward breach indicates increased technical pressure on the stock. Concurrently, the RSI stands at 33, a level close to the so-called oversold zone (generally set at 30), which suggests that the downward momentum is reaching a high intensity but does not mechanically signal a rebound. The stock is significantly below its 50-day and 200-day moving averages, positioned at 264.62 and 269.02 euros respectively, confirming a downward-oriented fundamental trend. The major resistance lies at 282 euros, more than 21% above the current price. The beta of 0.27, however, reminds us that the stock historically remains less volatile than the overall market, which puts the recent sharp decline into perspective compared to benchmark indices.
