EssilorLuxottica (1K) | Buy | Deep estimate revisions with Q2 preview

研报英文原文证据摘录

EssilorLuxottica (1K) | Buy | Deep estimate revisions with Q2 preview

#EarningsPreview #Negative #TPchange

Release date: 03 July 2026

Company research

ESG profile BuyEssilorLuxottica

France | Medtech & services Beta Profile: MCap: EUR81.4bn

Target Price: EUR244.00 (340.00) Change in TP: -28.2 % Bloomberg: EL FP Reuters: ESLX.PA

Current Price: EUR175.35 Change in Sales: -4.1% 26E/-6.9% 27E Free float 63%

Up/downside: 39.2% Change in Adj EBIT: -5.8% 26E/-10.9% 27E Avg. daily volume (EURm) 254.3

YTD abs performance -35.0% Market data: 02 July 2026 Change in Adj. EPS: -6.1% 26E/-11.3% 27E

52-week high/low (EUR) 320.70/163.50

Deep estimate revisions with Q2 preview Price performance

Why this report?

Against a comparable base, we expect Q2 to move broadly along the same

lines as Q1, with constant FX revenue growth of around 10% YOY (vs. 10.7% in

Q1). Against this backdrop, we expect operating margins to remain under

pressure, declining by 170bps YOY in H1 to 16.4%, reflecting a combination of

adverse FX, dilution from smart glasses (contributing for estimated c. 4.5% to

growth), and the carry-over impact of tariffs. With this report, we cut our

2026-28E EPS estimates by around 11% (with the impact back-end loaded), to

reflect a slower ramp-up in smart glasses alongside lower product-related

operating leverage (as suggested by new company's guidance). We lower our

DCF-derived TP to EUR244 (from EUR340), also reflecting a lower terminal

multiple. After the massive derating, the stock offers an appealing valuation

(25x 2026E P/E, 20x EV/EBIT) considering the resilience of its legacy business FY to 31/12 (EUR) 12/26E 12/27E 12/28E

and the potential (albeit downsized) of smart glasses. Sales 30,365 33,246 37,016

EBITDA adj. 7,348 8,112 9,106

Key findings EBIT adj.