EssilorLuxottica SA (EL FP) Buy: Not enough focus on the traditional business

研报英文原文证据摘录

EssilorLuxottica SA (EL FP) Buy: Not enough focus on the traditional business

29 June 2026

EssilorLuxottica SA (EL FP) EquitiesHealth Care Equipment &

Supplies

Buy: Not enough focus on the traditional business France

◆ Too much focus on the wearables category and not enough on MAINTAIN BUY

the traditional business, which accounts for the bulk of sales

TARGET PRICE (EUR) PREVIOUS TARGET (EUR)

◆ We expect Q2 sales (due 28 July) at constant FX to be up

200.00 340.00 10% and H1 margin to be down 200bps to 16.1%

◆ Maintain Buy, but cut TP by 41% to EUR200 on lower short- SHARE PRICE (EUR) UPSIDE/DOWNSIDE

and long-term earnings estimates and higher WACC 166.10 +20.4%

(as of 25 Jun 2026)

Too much focus on wearables. A lot of the attention on ESLX has focused on the set- MARKET DATA

up of the new wearables category, in partnership with Meta (Buy, CMP USD542.87), Market cap (EURm) 77,112 Free float 65%

Market cap (USDm) 87,672 BBG EL FP

which dates back to 2019. This was followed by the launch of Ray-Ban Stories in Sept 3m ADTV (USDm) 154 RIC ESLX.PA

2021, Ray-Ban Meta (Gen 1) in Sept-Oct 2023, and Ray-Ban Meta (Gen 2) and Meta

Ray-Ban display in Sept 2025. A pair of smart glasses was launched under ESLX’s FINANCIALS AND RATIOS (EUR)

Year to 12/2025a 12/2026e 12/2027e 12/2028e

Oakley brand in June-July 2025. The group recently announced the opening of a smart HSBC EPS 6.79 7.29 8.25 9.33

glasses production line (likely for some luxury brands) at its historic production facility in HSBC EPS (prev) 6.78 7.98 9.23 na

Change (%) 0.2 -8.5 -10.6 na

Agordo (Italy), which is planned to be fully operational in early 2027. More recently, it Consensus EPS 6.84 7.25 8.20 9.35

announced the launch of the Meta glasses. This has crystalised the debate, as for now PE (x) 24.4 22.8 20.1 17.8