(CercleFinance.com) – EssilorLuxottica climbed on the stock market this Friday in the wake of an increase in recommendation by Bank of America, which considers the valuation of the stock attractive in view of its recent underperformance.
Analysts at the US bank point out that the eyewear and optical lens maker’s stock has risen just 4% over the past three, while consumer-related stocks have rebounded 26% in the same time. .
“The title is now trading on a PER of 24x, which we consider attractive given the leading position occupied by the group in a structurally growing market,” explains BofA.
Believing that investors are showing ‘myopia’ in the face of the synergies generated by the company, the New York firm says it forecasts an average annual growth of 9% in earnings per share by 2025, accompanied by the payment of some 5.7 billion euros in dividends over the period.
EssilorLuxottica shares are currently up nearly 3%, posting the second highest rise in the CAC 40 behind Publicis.