EssilorLuxottica Shares Rebound After Multi-Year Low in May

Morgan Stanley Significantly Lowers Target While Maintaining Overweight Rating

EssilorLuxottica is up 1% at €176.55 during the session, alongside a 0.83% rise in the CAC 40. On May 29, Morgan Stanley updated its recommendation on the stock: the American firm maintains its overweight rating but lowers its price target from €315 to €225, a nearly 29% cut in the target. At the current price, this new target still leaves a theoretical potential of around 27%. The target movement reflects the downward trend suffered by the stock since February, with a decline of 21.6% over three months and 28.7% over a year. Today's increase occurs in a supportive market environment, as Brent crude falls to around $92.67 a barrel following the announcement of a ceasefire extension project between the United States and Iran. The stock is in the middle of the pack in the CAC 40, ranking mid-session.

The Rebound Brings the Price Just Above the MM20, Far from the MM200

The stock has moved back above its 20-day moving average (€173.61), with a 1.69% gap, indicating that the very short-term momentum is recovering after hitting a multi-year low in early May. However, the gap with the MM200 at €251.96 remains significant, with the price evolving 29.93% below this long-term reference, highlighting the extent of the downturn since February. The RSI at 43 remains in the neutral zone, without extreme signals. The support identified at €165.45, already tested in mid-May when the price had dropped below €164, has held and now serves as a technical floor. The major resistance is at €215.70, marking a substantial journey before any return to pre-downturn levels. The next intermediate milestone to watch is the MM50 at €187.61, which currently caps any more ambitious rebound.