EssilorLuxottica: Oddo's best pick in sector

(CercleFinance.com) - Oddo says that the rapid recovery of luxury consumption in the midst of the pandemic crisis has enabled the sector to benefit from significant momentum (significant increases forecasts with the rapid return to growth).


The analyst calculates that the entire European soft luxury + Richemont side recorded a year-on-year sales growth of 38% at constant exchange rates in Q1, i.e. 16% growth compared to Q1 2019.

Our overall forecasts for the remainder of 2021 lead to FY annual sales growth of about +30%, Oddo says.

Oddo therefore believes that the moderation in the stock market outlook that could occur over the next few quarters is likely to affect all stocks.

The analyst also maintains his preference for recommendations on the leading soft luxury franchises that have shown the best momentum since 2019.

Oddo considers EssilorLuxottica to be the most attractive stock in the sector with a target price of 157 euros (current price: 146.5 euros, +1.3%).


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