EssilorLuxottica shares lead the CAC 40, despite two downward target revisions
EssilorLuxottica posts the strongest performance on the CAC 40 early this afternoon, within a Paris index trending downward. The rebound occurs as two brokerage houses have revised their price targets downward over the past two days, a sign that the stock is gaining ground despite a fundamentally challenging backdrop.
Leading the CAC 40, the stock regains footing at its 20-day moving average
EssilorLuxottica gains 1.69% to €147.05 in trading, sitting near its 20-day MA at €147.01, a level it had not reached in several weeks following its lowest point since 2022 touched at the end of September at €138.85. The stock stands at the top of the CAC 40, while the index declines 0.58% in parallel. However, short-term momentum remains fragile: the RSI at 42 remains in neutral territory with no clear rebound signal, and the 50-day MA at €157.65 continues to act as a ceiling approximately 7% above the current price.
Over one month, the stock still shows a decline of 8.86%, and over one year losses exceed 46%. Regaining contact with the 20-day MA marks a first technical anchor point, but the €139 support level remains the true line of defense to monitor.
Two targets lowered by Barclays and Stifel, but consensus remains bullish long-term
Barclays lowered its price target on Wednesday from €265 to €260, while maintaining an overweight rating on the stock. The day before, Stifel also revised its target downward, from €290 to €280, while maintaining its buy recommendation. Both targets remain well above the current price, displaying theoretical upside potential of between 77% and 90% relative to the €147.05 session price.
This gap between analyst targets and market price reflects the magnitude of the correction recorded since the start of the year, a decline that the group's fundamentals do not entirely explain: upon publication of first-half 2026 results (July 28), EssilorLuxottica posted adjusted operating income up 15% at constant exchange rates and free cash flow of €1.07 billion, up €100 million. However, the downward target revisions illustrate progressive market adjustments in response to currency headwinds and the stock's persistent weakness over recent months.
