CORRECTED-BUZZ-'On the cusp of accelerating', Jefferies raises EssilorLuxottica to 'buy'

Correct company name throughout

Jefferies upgrades EssilorLuxottica ESLX.PA to "buy" from "hold," seeing the Franco-Italian eyewear maker's earnings on the cusp of accelerating thanks to its new growth drivers in AI and medical technology

The broker notes lucrative partnership with Meta META.O in AI-powered glasses and sees the company as frontrunner in myopia management, "a silent epidemic and multi-billion market in the making"

It sees EssilorLuxottica's growth structurally shifting to 6-8% vs consensus at around 6%, driven by new key optical trend builders, such as Ray-Ban Meta, Nuance audio glasses and Stellest lenses

Solid US sales and positive signs in the EMEA market further underpin growth, Jefferies says, adding it sees US tariff threats as "negligible" on license portfolio considering high-end luxury AI ambitions from Kering PRTP.PA and LVMH LVMH.PA

The broker also sees further expansion on the table in a market ripe for consolidation, citing a healthy balance sheet and steady free cash flow

It raises its PT by 59% to EUR 310, saying the stock deserves a "superior valuation"

Out of 22 analysts that cover EssilorLuxottica, 16 rate the stock "strong buy" or "buy" and six rate it "hold"