At the top of the CAC 40, EssilorLuxottica stock gains 1.5% despite UBS downgrade
EssilorLuxottica advances significantly at midday, while the CAC 40 declines overall. The stock rebounds after a series of difficult sessions, while two brokerage firms have just revised their price targets downward.
A rebound that brings the stock back to its 20-day moving average, far from its peaks
EssilorLuxottica gains 1.65% to €145.15 during the session and ranks among the strongest gainers on the CAC 40, which declines 1.07%. The price is at the level of its 20-day MA (€145.37), after trading well below it in the previous week. The movement remains modest compared to the accumulated decline: the stock is still down 15.71% over three months, and the 200-day MA at €195.70 is more than 25% above the current price. The €139.00 support level held during recent tests, which partially explains today's surge.
UBS and Deutsche Bank lower their price targets, UBS reducing its target from €282 to €247
Two revisions came in today. UBS maintains its buy rating but lowers its price target from €282 to €247, leaving approximately 70% upside potential from the current price. Deutsche Bank, which remains at hold, reduces its target from €174 to €157, representing roughly 8% upside from today's price.
These adjustments come in a context of valuation erosion: the stock has fallen nearly 49% over a year. On fundamentals, the group published half-year results on July 28 with adjusted operating income up 15% at constant exchange rates, and free cash flow of €1.07 billion.
