EssilorLuxottica "Defin's Risks Likely Overstated;Reiterate Buy" (Buy)

Research evidence excerpt

EssilorLuxottica "Defin's Risks Likely Overstated;Reiterate Buy" (Buy)

Global Research

9 June 2026ab

EssilorLuxottica Equities

FranceDefin's Risks Likely Overstated;Reiterate Buy

Retailers, Specialty

12-month rating Buy

Disconnect Between News Flow and Share Price

The muted market reaction to Google’s smart glasses launch (Warby Parker’s >10% 12m price target €312.00

decline on the day), and press reports pointing to a potential delay in Apple launch to

late 2027, would typically have supported ESLX's share price, especially given reassuring

Price (08 Jun 2026) €172.60

Meta-related news flow. However, the absence of any meaningful share price reaction

came as a surprise. Attention appears to be on potential developments at ESLX’s largest RIC: ESLX.PA BBG: EL FP

shareholder, Delfin (~32% stake), where ongoing succession-related reorganisation and

Trading data and key metrics

potential stake transfers among heirs (widely reported in the Italian press) could create

52-wk range €320.70-165.90

some uncertainty around funding needs at the holding company level. While the

situation differs materially from the post-ESLX merger dispute, the stock’s Market cap. €79.4b/US$91.7b

underperformance vs. the broader luxury sector mirrors the pattern seen in 2018–19. In Shares o/s 460m (ORD)

our view, the market is overestimating the risks to ESLX, resulting in a ~13% discount to Free float 57%

the fair value of its core business and assigning no value to smart glasses upside, which Avg. daily volume ('000) 689

we see as unjustified. Buy. Avg. daily value (m) €129.5

Common s/h equity (12/26E) €40.0b

Delfin Risks Likely Overstated P/BV (12/26E) 2.0x

Delfin does not exercise full control over ESLX’s operations, but as a long-standing Net debt to EBITDA (12/26E) 1.4x