BUZZ-RBC ups Ray-Ban maker EssilorLuxottica on promising growth in ophthalmology

RBC upgrades Franco-Italian eyewear maker EssilorLuxottica ESLX.PA to "outperform" from "sector perform" citing strong fundamentals and significant growth opportunities in the ophthalmology market

RBC estimates the total addressable market (TAM) for ophthalmology to be valued at $36 billion, excluding the pharmaceutical sector, with expected growth of 3-5% annually

It says Essilor will primarily expand in subcategories like contact lenses, surgery, and diagnostics

"One percentage point of market share gained in this new segment would offer $210m (or 0.8%) revenue uplift on our estimates," RBC says

It notes an opportunity for Essilor is the potential acquisition of contact lens maker Bausch + Lomb BLCO.TO, which is officially up for sale as of December