Luxottica: A successful business model in an accelerating global optical market
BUY, Fair Value EUR38 vs. EUR35 (+5%)
At the Investors Day in Milan last Friday, we were presented the main sales opportunities (G. Armani, Oakley, emerging markets…) which should enable LUX to reach its FY13 “rule of thumb” of high-single-digit growth at constant FX again (BG: +8.4%e). However, we were impressed by the EBIT guidance, which is expected to increase twice as fast as sales growth, thanks to numerous margin enhancers (Tecnol, G. Armani from H2 13, EM…). Following various increases in our FY13-15 forecasts, we are upgrading our FV to EUR38 vs. EUR35 previously. Buy recommendation confirmed.
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