RBC Tweaks EssilorLuxottica Forecasts Amid Lower H2 Revenue Expectations for AI Smartglasses

08:09 AM EDT, 08/04/2026 (MT Newswires) -- RBC Capital Markets made a "small" change to its estimates for EssilorLuxottica (EL.PA) after the French eyewear group's second-quarter revenue fell short of market forecasts. "Net, we are almost relieved to see a revenue miss due to lower AI Smartglasses contribution in 2Q26, as it offers better margins and the opportunity for expectations to moderate into a tougher 2H26 comparative period. We remain positive on the 'core' EL business which continues to grow + mid-single digit with consistency, whilst the near term outlook for AI Smartglasses is likely to be impacted by competitor product launches," the research firm said in a Monday note. For full-year 2026, analysts cut their organic revenue growth estimate to 8.8% from 10.5% amid expectations that the revenue contribution from AI Smartglasses will come in lower in the second half. The adjusted EPS projection for the year was bumped up. Group revenue forecasts for 2027 and 2028 were also lowered, while the adjusted EPS estimates for both years are "broadly unchanged." "Shares have de-rated to 20x CY27E P/E, 16x EV/EBIT and 2.4x EV/sales which are below long term historic levels, and more attractive relative to the fundamentals of the 'core' EL business in our view. We believe forward-looking earnings growth and FCF potential remain compelling, with almost free optionality on AI Smartglasses potential," RBC added, maintaining the 230 euro price target for the outperform-rated stock.