Essilorluxottica

EL: XPAR (FRA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	€174.00	Hfllr	Ljlmppmr

EssilorLuxottica: Sales Growth Pace Decelerates, Shares Fairly Valued

Jelena Sokolova

Oct 20, 2023

We are increasing our fair value estimate for wide-moat EssilorLuxottica from EUR 155 per share to EUR 162 per share, largely as a result of time value of money after the company reported some deceleration in sales growth in the third quarter. Sales growth was 5.2% in the quarter at constant exchange rate, and currencies were a meaningful headwind (revenue at actual exchange rates down by 1.6%). This was a deceleration from 8.2% in the first half. Deceleration was quite broad-based across the regions. We see shares as fairly valued at current levels.

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