William Blair initiates coverage of Luxottica Group S.p.A.
13 Jun '07
1 min read
William Blair & Company initiated research coverage of Luxottica Group S.p.A. a leader in fashion eyewear, with an Outperform rating and company profile of Core Growth.
Analyst Mark Miller and associate analyst Daniel Hofkin estimated that the company, which operates the LensCrafters, Pearle Vision, and Sunglass Hut chains, would generate earnings per ADR of $1.48 in 2007 and $1.72 in 2008.
“Luxottica's impressive brand portfolio reflects prowess and scale in design, manufacturing, distribution, and marketing,” Hofkin said. “These competitive advantages enable the company to attract luxury consumer brands looking to enter or increase their presence in the eyewear market. Luxottica's brand portfolio is perhaps the strongest of all the eyewear manufacturers.”
“Growth opportunities remain considerable in the United States and open-ended abroad,” he added. “Luxottica's opportunity to enhance its strong U.S. presence is augmented by Americans' growing affinity for affordable luxury. Overseas opportunities are open-ended, in our opinion, given emerging markets' vast underpenetration, growing consumer purchasing power, and desire for fashion.”
William Blair & Company, L.L.C. has received compensation for investment banking services from the company within the past 12 months, or expects to receive or intends to seek compensation for investment banking services in the next 3 months.
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