EssilorLuxottica: Q1 should offer a break, Jefferies says
(CercleFinance.com) - Broker Jefferies has confirmed its "hold" rating on the EssilorLuxottica share ahead of the group's Q1 2019 sales figures, which it will announce on 7 May.
It maintains its target price of 100 euros for the share.
Note that the EssilorLuxottica share has recovered over 8% the past week.
From an operational viewpoint, Jefferies expects a "solid" start to the year for the optical giant: EssilorLuxottica's organic sales growth is expected to reach 3.2% in Q1, with the trend at Essilor broadly the same at as at Luxottica. The broker says that a favourable comparison basis should help and furthermore, management should confirm the forecasts for 2019, experts predict.
This should mean a temporary break for the group, while EssilorLuxottica still faces a serious crisis of corporate governance. Unsurprisingly, investors are questioning how to get out of the current deadlock, which is an essential prerequisite for renewed confidence in the timing of when synergies are generated, Jefferies adds.
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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.
It maintains its target price of 100 euros for the share.
Note that the EssilorLuxottica share has recovered over 8% the past week.
From an operational viewpoint, Jefferies expects a "solid" start to the year for the optical giant: EssilorLuxottica's organic sales growth is expected to reach 3.2% in Q1, with the trend at Essilor broadly the same at as at Luxottica. The broker says that a favourable comparison basis should help and furthermore, management should confirm the forecasts for 2019, experts predict.
This should mean a temporary break for the group, while EssilorLuxottica still faces a serious crisis of corporate governance. Unsurprisingly, investors are questioning how to get out of the current deadlock, which is an essential prerequisite for renewed confidence in the timing of when synergies are generated, Jefferies adds.
Copyright (c) 2019 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.