EssilorLuxottica: stock up as broker likes valuation

(CercleFinance.com) - EssilorLuxottica shares are up this Friday, following a rating upgrade by Bank of America, which considers the stock's valuation attractive in light of its recent underperformance.


Analysts at the US bank point out that the eyewear and optical lens maker's shares have risen just 4% over the last three years, while consumer-related stocks have in comparison jumped 26% over the same period.

Analysts point out that the stock is now trading at a P/E of 24x, which they consider attractive given its leading position in a structurally growing market.

They add that they believe investors are short-sighted regarding the synergies generated by the company and expect to see average annual EPS growth of 9% by 2025, with some 5.7 billion euros paid out in dividends over the period.


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