AlphaValue confirms its 'Reduce' recommendation on the EssilorLuxottica stock, with an unchanged 6-month target price of €297.

The analyst believes that the margin dilution associated with Meta Ray-Ban is 'probably lower than investors think', as actual costs appear to be lower than usual assumptions; however, display models would remain more dilutive and produced in low volumes.

The broker mentions an implicit guidance downgrade on smart glasses production capacity: the target of 10 million units by 2026 would now include all models, not just Meta Ray-Ban.

According to the broker, the adoption of smart glasses by opticians will be key to the group's future success, but "will not be easy," which could weigh on distribution power if opticians turn away from the EL ecosystem.