On Friday, Stifel adjusted its price target for EssilorLuxottica SA (EL:FP) (OTC: OTC:ESLOY), the Franco-Italian eyewear conglomerate. The firm increased the target to €207.00 from €203.00 and reaffirmed its Hold rating on the stock. This revision follows EssilorLuxottica's first-quarter sales report for 2024, which showed a 5.5% growth in constant-currency terms, slightly under the anticipated 5.8%.
The company's performance in different regions varied, with North America experiencing a lower-than-expected increase of 1.7%, compared to the consensus estimate of 4.0%. However, the EMEA (Europe, Middle East, and Africa) region exceeded expectations with an 8.5% rise, surpassing the consensus forecast of 5.8%.
EssilorLuxottica's management expressed a positive outlook, with Chief Financial Officer Stefano Grassi noting the impact of lower comparative figures from the previous year, effective pricing strategies, and the introduction of new products. The company's steady performance and strategic initiatives contributed to Stifel's decision to maintain the Hold rating but lift the price target slightly.
The updated target price of €207.00 reflects a modest increase, indicating a level of caution amid the company's recent sales results. The Hold rating suggests that Stifel advises investors to maintain their current position on EssilorLuxottica shares without suggesting any immediate action to buy or sell.
EssilorLuxottica, known for its portfolio of eyewear brands and prescription lenses, continues to navigate market conditions while focusing on growth and product innovation. The company's latest financial figures and subsequent price target adjustment by Stifel will be of interest to investors monitoring the eyewear industry.
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