Barclays says Eyecare 'offers a compelling long-term growth opportunity'

Carl Zeiss Meditec AG

10/09/2025 12:07

** Within European Medical Technology & Services, eyecare offers a compelling long-term growth opportunity supported by demographic trends, rising awareness and innovation, Barclays says

** It initiates coverage of European eyecare companies EssilorLuxottica ESLX.PA and Carl Zeiss Meditec AFXG.DE with "overweight," seeing both well-positioned to benefit from the above structural tailwinds

** The broker sees the higher growth in varifocals as supporting lens growth at EssilorLuxottica

** High myopia should support new treatments such as EssilorLuxottica's Stellest lenses and associated diagnostic equipment, it adds

** It expects wearables to become a meaningful revenue stream for EssilorLuxottica over the medium-term, seeing they could reach about 7.5% of sales by 2030

** Barclays sees Carl Zeiss Meditec as a "rightful and strong" participant in the Surgical Ophthalmology market, identifying about 100 basis points (bps) of share gains on a five-year view

** It expects the company to once again outgrow the market, driven by a recovery in refractive consumables

** The broker forecasts 7% revenue CAGR and about 400bps margin expansion to 2027/2028 for the company at group level

 (Reporting by Marta Frąckowiak)

 ((marta.frackowiak@thomsonreuters.com))