HSBC ups EssilorLuxottica citing 'first-mover advantage' on AI glasses

HSBC upgrades EssilorLuxottica ESLX.PA to "buy" from "hold", citing a higher total addressable market for smart glasses as the Franco-Italian eyewear giant benefits from a "first-mover advantage" thanks to its partnership with Meta META.O

HSBC expects the company to sell 15 million units of smart glasses in 2026, up from its previous forecast of 9 million, with a potential volume of 57 million units in 2040

EssilorLuxottica's vertically integrated model and attractive brand portfolio, including Ray-Ban and Oakley, provide a durable competitive advantage, the broker says

"It should continue to provide a competitive advantage to the group despite the increase in competition," it adds

Shares in EssilorLuxottica rise more than 2%, leading gains on France's benchmark CAC 40 .FCHI index

Out of 23 analysts that cover EssilorLuxottica, 20 rate it "strong buy" or "buy" and ​three "hold" - LSEG data