RBC Capital Markets downgrades its opinion on EssilorLuxottica from 'sector perform' to 'underperform', despite raising its target price from 150 to 155 euros, with a 7% reduction in its EPS estimate for 2023.

While it considers the Franco-Italian optics group's share price to have been a relative winner in 2022 (-11%, broadly in line with the MSCI Europe), the broker warns that factors favorable to the dossier could reverse in 2023.

Sun's comparatives become more difficult, low exposure to China could be a drawback given the validity of the reopening theme, optical demand in North America should moderate and the dollar weaken', it supports.

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