EssilorLuxottica stock leads CAC 40, surges 14% following sales results
EssilorLuxottica is pulling the CAC 40 higher in mid-session trading, following a quarterly publication that the market is welcoming very favorably. The stock is thus emerging from an extended period of decline, while two brokers adjust their price targets.
A 14% surge that brings the stock back above its short-term averages
The EssilorLuxottica share gains 14.02% to €171.60, compared to €150.50 at the previous close. It is the strongest gain in the CAC 40, which index advances 0.55%. The movement extends an already significant rebound, with +17.29% over the week, and the price is now 16.79% above its 20-day moving average and 13.16% above its 50-day moving average. The 200-day moving average, at €188.30, remains 8.87% above the current price: the stock has not yet recovered its long-term trend, as it still falls 45.33% over one year.
The trigger is third quarter revenue, published on October 20: €7,486 million, up 7.2% at constant exchange rates. Growth is primarily driven by direct-to-consumer sales (+10.6% over the first nine months, with comparable store sales advancing 6.8%). The myopia management portfolio grew 24% over the same period, and the traditional business (Eyecare and Medtech) by more than 6%. The stock was nonetheless under pressure heading into this publication, following two price target cuts the previous day.
UBS and Stifel lower their targets while remaining bullish
Two brokers weighed in on Wednesday. UBS lowered its price target from €247 to €244 and maintained its buy rating. Stifel, for its part, moved from €260 to €240 with the same rating. These two targets remain well above the current price of €171.60, representing upside potential of approximately 40% for UBS and 42% for Stifel.
The analyst consensus thus remains positioned significantly higher than the market, even after these downward adjustments. On the technical side, support sits at €139 and resistance at €215.70. The RSI, at 52.44, has returned to neutral territory following the rebound, and the MACD histogram has moved into positive territory at 1.13. The next level to monitor remains the 200-day moving average, at €188.30, representing approximately 10% above the current price.
