ESLOF - EssilorLuxottica: Short-Term Margin Pressure Buy Confirmed
2024-02-22 23:39:25 ET
Summary
- We believe the company's lower profitability is only temporary. However, to balance our risk/return, we lower our buy rating estimates.
- The CEO reiterated commitment and confidence in the capital market day targets. 2026 sales at €27/€28 billion with an EBIT margin in the 19/20% range.
- The dividend per share was increased by 22%, and there is an ongoing deleverage. This offers solid downside protection and confirms our positive view.
Since our initiation of coverage , EssilorLuxottica Société anonyme's ( ESLOF , ESLOY ) total return reached >35%, outperforming the S&P 500 results. Looking back on our publication, we are delighted with the company's performance in both financial and operational terms. Last week, EssilorLuxottica reported its Q4 and Fiscal Year 2024, and below were its main growth highlights:
- Innovation is a key value driver and is supported by Stellest, Ray-Ban Meta, and Varilux XR
- Nuance Audio was successfully presented at the CES in Las Vegas