Bernstein 'More Positive' on EssilorLuxottica Despite Smart Glasses Privacy Concerns

07:38 AM EDT, 08/26/2026 (MT Newswires) -- Bernstein is "more positive" on EssilorLuxottica (EL.PA) despite privacy concerns and bad press surrounding smart glasses, noting that action regarding these social trust issues fall on the regulators. "We wrote before about the impact of smart glasses on the group's LT economics and estimated the right valuation in the current context at ~24x PE. The public outcry against smart glasses makes the bearish scenario of a cannibalistic, disruptive and margin dilutive impact on the category less likely. However, given the optics of the problem, we wonder how much reputational damage has been done to the Ray-Ban brand," the research firm wrote in a Wednesday note. Analysts highlighted how the French eyewear group's Ray-Ban Metas are now suffering from the public's concerns over privacy, safety and security after initially enjoying "outstanding" commercial success. "Smart glasses are being associated with bad actors, giving them a bad reputation. As a result, users are buckling under social pressure and quit using them even when they appreciate their features," Bernstein added. "While platforms have taken it upon themselves to remove any harmful content filmed with these devices, it is not illegal to film people in public, so the authorities cannot do anything about it. The burden now lies on the regulators to change this." The stock is rated market-perform, with a price target of 200 euros.