Deutsche Bank Upgrades Luxottica Group (LUX) to Buy

September 13, 2016 7:50 AM EDT
Get Alerts LUX Hot Sheet
Price: $49.90 +2.78%

Rating Summary:
    5 Buy, 3 Hold, 4 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 50 | New: 20
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Deutsche Bank upgraded Luxottica Group (NYSE: LUX) from Hold to Buy. Analyst Francesca DiPasquantonio said risk-reward has become more favorable.

"Luxottica de-rated by 35% in the LTM due to well-known concerns on management governance and the downgrade of FY16 guidance. At 22x PER, the shares are at a 15% discount to peers. However, structural growth opportunities are similar and Luxottica’s global platform allows scope for outperformance. In addition, a rich balance sheet and strong cash-flow generation enable external growth. The opportunity for expanding its global reach through acquisitions is not discounted in the price. Similarly, the market is not recognizing the company’s market leadership and ROCE," said the analyst.

For an analyst ratings summary and ratings history on Luxottica Group click here. For more ratings news on Luxottica Group click here.

Shares of Luxottica Group closed at $48.07 yesterday.

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