EssilorLuxottica S.A.

EssilorLuxottica is forecast to deliver approximately 9.5% constant currency sales growth in Q2 2026, with strong top-line momentum across both operating segments. Long-term revenue projections remain robust, with analysts forecasting continued 6% annual sales growth and projected EPS recovery over the coming years.

Deutsche Bank maintains a cautious Hold rating, warning that significant foreign exchange headwinds are set to offset strong operational performance. The firm's sales and adjusted EPS estimates for 2026 sit 1% and 3% below consensus respectively, with an even larger gap in outer years, signaling a need for consensus expectations to be rebased.

Despite a sharp year-to-date share price decline, InvestingPro analysis suggests EssilorLuxottica shares are undervalued, with Fair Value estimates pointing to meaningful potential upside. The stock's strong market position and an $86.5 billion market cap provide a foundation for multiple re-expansion as earnings recover.

EssilorLuxottica continues to trade at an elevated P/E ratio of 33.3, which many analysts view as stretched given near-term margin pressure. SimplyWallSt's new price target sits 13% below the last closing price, and the forward EPS forecast of €6.58 implies limited room for multiple expansion at current levels.

EssilorLuxottica benefits from relatively easy year-on-year comparables in the near term, providing a favorable backdrop for reported growth. Analyst consensus remains skewed positive, with 19 Strong Buy and 12 Buy ratings versus only 3 Sell ratings, reflecting confidence in the company's ability to sustain momentum.

Deutsche Bank explicitly flags that EssilorLuxottica faces a final quarter of easy comparables before they become significantly more demanding in the second half of 2026. This transition is expected to weigh on reported growth rates and margin progression, making it harder for the company to meet elevated consensus estimates.