EssilorLuxottica: plenty of value to unlock, MS says
(CercleFinance.com) - Shares of EssilorLuxottica, the Franco-Italian eyewear giant, rose almost 1% on Monday after Morgan Stanley upgraded the company to "overweight" from "equal-weight.
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Morgan Stanley analysts also raised their price target on the shares to 143 euros from 111 euros.
"We see compelling value-creation opportunities from the ongoing vertical integration," the broker said in a note.
Morgan Stanley said it turned more bullish on synergies and sees takerover target GrandVision potentially adding a further 15% to EssilorLuxottica's fair value.
A blue-sky scenario could even add more than 50% upside, it said.
EssilorLuxottica shares are currently up 1% to 133.3 euros in late morning trade on Euronext Paris, outpacing a 0.9% drop in the CAC index.
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.
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Morgan Stanley analysts also raised their price target on the shares to 143 euros from 111 euros.
"We see compelling value-creation opportunities from the ongoing vertical integration," the broker said in a note.
Morgan Stanley said it turned more bullish on synergies and sees takerover target GrandVision potentially adding a further 15% to EssilorLuxottica's fair value.
A blue-sky scenario could even add more than 50% upside, it said.
EssilorLuxottica shares are currently up 1% to 133.3 euros in late morning trade on Euronext Paris, outpacing a 0.9% drop in the CAC index.
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.