STOCKS NEWS EUROPE-Luxottica rises on Deutsche Bank upgrade
Ray-Ban sunglasses maker Luxottica rises 3.5 percent, leading gains on a slightly negative Milan blue-chip stock index, with traders citing Deutsche Bank's upgrade of its rating on the stock.
By 0940 GMT traded volumes are roughly half the last month's daily average.
Analysts at Deutsche Bank upgrade the stock to "buy" due to its recent underperformance and set a target price of 45.5 euros, compared to the current trading level of 38.7 euros.
"We believe Luxottica is a rare example of a company which, for the most part, can master its own destiny, barring the macro environment, and hence, a long time favourite," they write in a luxury goods report.
Luxottica, the world's biggest eyewear company which makes and distributes eyewear under licence for Armani and Prada, and supplies the U.S. armed forces with Oakley-branded glasses, reports full-year 2013 results on Jan. 28. Analysts polled by Reuters forecast mean full year revenues of more than 7.3 billion euros ($9.90 billion).
The Italian company is due to continue its longstanding strategy of buying companies across the eyewear supply chain, from design through manufacturing to retail, by closing the acquisition of online virtual optician's showroom glasses.com in the first quarter of 2014.
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