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

Reuters01-14
BUZZ-<a href="https://laohu8.com/S/HSBC">HSBC</a> ups <a href="https://laohu8.com/S/ESLOF">EssilorLuxottica</a> 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

(Reporting by Gianluca Lo Nostro)

((gianluca.lonostro@thomsonreuters.com;))

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