(Boursier.com) — EssilorLuxottica points at the top of the CAC40 this weekend thanks to a gain of 5.4% to 185 euros. At its highest since January 2022, the title of the world’s number one optical lens is driven by a very good quarterly publication with consolidated sales of 6.151 billion euros (5.94 billion euros consensus), up 8.6% at constant exchange rates (+9.7% at current exchange rates). All regions are accelerating compared to the 4th quarter of last year.
RBC (‘underperforming’) indicates that revenue momentum was better than expected across all regions and channels. The broker is slightly raising its growth expectations for the year but doubts the sustainability of growth in the US and EU for the rest of 2023. The margin outlook remains mixed: “we prefer to see margins first semester before revisiting our more cautious view. “Excellent start to the year, with comments on activity at the start of the second quarter also positive,” notes Citi, on the ‘purchase’ of the file.
Less exposed to China than luxury stocks and impacted by fears linked to macroeconomic developments in the US and Europe, the stock visibly underperformed at the start of the year, posting a modest increase of less 4% while the Stoxx 600 gained more than 10% and the luxury sphere recorded a jump of nearly 30%, explains Oddo BHF. The growth posted for Q1, which once again exceeds the +5% considered as the standard for medium-term annual growth, despite a not really favorable basis for comparison, seems to confirm that this treatment is rather unfair and that the discount of nearly -20% observed on the basis of PE and EV/EBIT multiples compared to stocks listed in Paris with structural growth/consumption connotations is exaggerated at this stage… Based on a target price raised from 192 to 195 euros under the effect of the rise in its earnings forecasts, the broker reiterates its opinion of ‘outperformance.
Finally, Stifel (‘purchase’) revalues the file from 200 to 210 euros. Beyond the stronger than expected revenue momentum, the analyst appreciates the recovery in profitability thanks to the smooth integration of GrandVision.
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