EssilorLuxottica: Deutsche Bank downgrades buy rating
(CercleFinance.com) - Ahead of EssilorLuxottica's first CMD, to be held tomorrow, Deutsche Bank is now less positive towards the optical giant.
It has hence downgraded its buy rating to "hold," even though it has raised its corresponding target price from 130 euros to 138 euros. Note that the share price has risen by 36% in the past six months.
Indeed, the organisation of a CMD: "Only a few months ago this seemed impossible," the broker says in its report, due to tensions amongst top management, which currently seem to have calmed. Considered as a "cash cow", the new group EssilorLuxottica should, "Deutsche" estimates, generate total free cash flow of 14 billion euros by 2025.
However, although analysts believe that synergies from mergers (Essilor and Luxottica, and then GrandVision) should create more value, they do not think that it will be plain sailing.
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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 has hence downgraded its buy rating to "hold," even though it has raised its corresponding target price from 130 euros to 138 euros. Note that the share price has risen by 36% in the past six months.
Indeed, the organisation of a CMD: "Only a few months ago this seemed impossible," the broker says in its report, due to tensions amongst top management, which currently seem to have calmed. Considered as a "cash cow", the new group EssilorLuxottica should, "Deutsche" estimates, generate total free cash flow of 14 billion euros by 2025.
However, although analysts believe that synergies from mergers (Essilor and Luxottica, and then GrandVision) should create more value, they do not think that it will be plain sailing.
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.