Essilor shares are down nearly 2% as RBC Capital Markets has downgraded its opinion on the stock from 'sector performer' to 'underperformer', despite raising its target price from 150 to 155 euros, with a 7% reduction in its EPS estimate for 2023.

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

A low exposure to China could be a drawback, given the validity of the reopening theme, while optical demand in North America should moderate and the dollar weaken", he adds.

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