Luxottica: UBS raises target price; remains 'neutral'
(CercleFinance.com) - UBS on Thursday raised its target price on Luxottica from 49 euros to 52 euros, although maintained its "neutral" rating on the Italian eyewear maker's share, citing "balanced" upside and downside risks.
While the broker believes the proposed merger with Essilor is well on track, UBS does not expect the market to adjust its synergy expectations until further details emerge.
At this stage, UBS still estimates synergies of 4.1 billion euros for EssilorLuxottica.
Also, Luxottica's first-half numbers are unlikely to be a positive catalyst in the broker's view, with the improved gross margin from lowering discounts being offset by the group's operating cost deleverage.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
While the broker believes the proposed merger with Essilor is well on track, UBS does not expect the market to adjust its synergy expectations until further details emerge.
At this stage, UBS still estimates synergies of 4.1 billion euros for EssilorLuxottica.
Also, Luxottica's first-half numbers are unlikely to be a positive catalyst in the broker's view, with the improved gross margin from lowering discounts being offset by the group's operating cost deleverage.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.