EssilorLuxottica Looks at Healthy Recovery From Coronavirus As Q1 Sales Outstrip 2019 Levels

We are increasing our fair value estimate for wide-moat EssilorLuxottica to EUR 131 from EUR 120 as a result of time value of money effect and expectations for a slightly faster recovery from the coronavirus crisis. We now expect 2021 revenue and adjusted operating profit to be slightly above 2019 levels (company’s goal for profitability and revenue at constant exchange rates to at least match 2019 levels) if the Grandvision acquisition impact is excluded. We still expect the merger to go through in the second half of the year, with the main markets cleared for antitrust purposes. We see the acquisition as value-neutral for the company.