Essilor: 2017 could be 'a lost year,' SG says.
(CercleFinance.com) - In a report published this morning, Société Générale (SG), maintains its "hold" rating on the French optical giant Essilor International.
However, analysts fear a "difficult 3Q with limited visibility on growth - Time to rethink the case," as mentioned in their report. They have also cut their 12-month target price for the stock from 120 euros to 109 euros.
Analysts are first worried about the "headwinds" that have penalised the group: “Essilor's top-line growth trajectory has been curbed since July 2016 by unfavourable weather in 2Q16, Trump's election in 2H16, then sluggish 2.5% organic growth in 1H17,” their report states.
“This puts the 3-5% organic growth trend apparent since 2010 at risk, with the shift down to a less impressive 2-3% trend potentially marking a paradigm shift,” SG analysts fear.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
However, analysts fear a "difficult 3Q with limited visibility on growth - Time to rethink the case," as mentioned in their report. They have also cut their 12-month target price for the stock from 120 euros to 109 euros.
Analysts are first worried about the "headwinds" that have penalised the group: “Essilor's top-line growth trajectory has been curbed since July 2016 by unfavourable weather in 2Q16, Trump's election in 2H16, then sluggish 2.5% organic growth in 1H17,” their report states.
“This puts the 3-5% organic growth trend apparent since 2010 at risk, with the shift down to a less impressive 2-3% trend potentially marking a paradigm shift,” SG analysts fear.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.