EssilorLuxottica stock price target raised to €305 by Goldman Sachs

Goldman Sachs raised its price target for EssilorLuxottica to €305 from €277, maintaining a Buy rating, driven by the successful launch of new wearables, including enhanced Ray-Ban Meta Gen 2 smart glasses and expanded Oakley Meta offerings. This product innovation led Goldman to increase its 2030 annual wearables unit forecast to 20 million, reflecting strong growth potential despite the company's current premium valuation (P/E 53.13) and Goldman's expectation of Q3 2025 revenues falling 2.5% below consensus due to foreign exchange factors.

Analysis

Goldman Sachs has raised its price target on EssilorLuxottica to €305.00, maintaining a 'Buy' rating, driven by strategic advancements in the company's wearables segment. The upgrade is underpinned by the launch of the Ray-Ban Meta Gen 2 smart glasses, which feature improved functionality and command a higher price point of $379 versus $299 for the prior generation, signaling a positive price mix. This product innovation, along with the expansion of the Oakley Meta line and the introduction of a new $799 display-integrated product category, has prompted Goldman to increase its long-term wearables forecast to 20 million annual units by 2030, up from 18 million. This bullish long-term outlook contrasts with the stock's current premium valuation, reflected in a P/E ratio of 53.13 after a 35% year-to-date surge. While analyst targets suggest an 11% upside, potential headwinds exist; Goldman itself expects Q3 2025 revenues to be 2.5% below consensus due to foreign exchange factors, and InvestingPro's fair value analysis indicates the stock may be overvalued at current levels.

Key Decisions for Investors

• Long-term investors should weigh the compelling growth narrative from the expanded wearables portfolio against the stock's premium valuation and a P/E ratio of 53.13.
• Monitor the upcoming Q3 2025 revenue announcement for potential short-term volatility, given Goldman Sachs's projection of a 2.5% miss relative to consensus estimates due to FX headwinds.
• Given the stock's 35% year-to-date rally and an InvestingPro fair value analysis suggesting it is overvalued, it may be prudent to assess entry points carefully, as the positive long-term outlook may already be priced in.