Posted Apr 23, 2023, 10:07 AMUpdated on Apr 23, 2023, 2:59 PM
Very near vision can sometimes improve distance vision. It apparently needed the big numbers of organic growth more than double of that expected over the first three months of the year (+8.6%) for investors to admit that they had perhaps put their finger in the eye on the case of EssilorLuxottica.
They had put on their dark glasses to examine the Franco-Italian group since signs of the impact of inflation on its margins had become visible in the second half of 2022. Loving nothing less than vagueness, they saw the financial year 2023 reflect the same uncertainties for a world leader in optics deemed too exposed to North America (47% of sales) at a time when it is slowing down, and not enough to China (5%, according to the brokers) when this one restarts.
20% stock market discount
This point of view was worth under a stock market discount of nearly 20% on the multiples of Parisian values of structural growth in consumption, notes the analyst from Oddo BHF. The strong reacceleration of growth, very well distributed and fueled by the integration of the distributor GrandVision, deserved to correct this excessive myopia.
The 6.3% rise on Friday in the ninth capitalization of the CAC 40 erases its underperformance on the index since the completion of the merger between Essilor and Luxottica in 2018. But it leaves it behind the European sectors. health and consumption. Becoming the darling of wallets again will require pushing the mount.
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2023-04-23 17:27:39
#Consumption #health #optics #EssilorLuxottica #finger #eye
