EssilorLuxottica Bets on Camera-Free Frames as RBC Trims Target to EUR 190

EssilorLuxottica debuted a camera-free Ray-Ban Meta Audio at Meta Connect, sending shares up 3.6% even as RBC trimmed its price target to EUR 190.

EssilorLuxottica used Meta's annual Connect developer conference in Menlo Park, California, to unveil a broader lineup of smart eyewear, headlined by its first camera-free model. The stock responded with a 3.6% advance to EUR 150.00, lifting the shares 8.7% off a recently struck 52-week low — though they remain down 45% since the start of the year.

A 43-Gram Entry Point and a Third Generation

The centerpiece of the presentation was the Ray-Ban Meta Audio, a device that dispenses with both camera and display. The entry-level frame weighs 43 grams, carries a starting price of USD 349 and runs on the Muse AI assistant. It ships in styles including Clubmaster and Burbank, and is aimed at audio playback, translation and phone calls.

Alongside it, the partners rolled out the third generation of the standard Ray-Ban Meta, equipped with a 12-megapixel camera and 3K UHD video. The refresh brings six microphones, longer battery life and a customizable action button. The range launches with 27 color and lens combinations, and the two companies intend to push their combined catalog past 100 distinct AI eyewear styles by the end of 2026.

FDA Clearance Opens a Medical Front

Beyond consumer electronics, the joint venture is pushing into healthcare. A built-in hearing-enhancement feature for mild to moderate hearing loss has secured clearance from the US Food and Drug Administration. The capability is slated to reach the US market later this year, offered either as a one-time payment or by subscription.

Geographic expansion is advancing in parallel. Distribution is set to extend to Poland, Portugal, South Africa, Israel and New Zealand in the coming months. For the display model, pre-orders are now gradually opening in Germany, France and Italy, following earlier launches in Canada and the UK.

Seven Million Units, and a Privacy Backlash

The deeper collaboration builds on a breakout sales year. After roughly two million units across 2023 and 2024, the partners moved more than seven million smart glasses worldwide in 2025. At one stage, both sides even weighed raising annual production capacity to 20 million devices.

That momentum has drawn growing resistance. In the UK, a number of hospitality venues and event spaces have moved to restrict camera glasses. The venture also faces a proposed class action in California, where Meta and Luxottica are accused of having human reviewers annotate intimate imagery. Meta denies the allegations and points to safeguards such as a recording LED whose cover automatically disables the camera.

Market Dominance Meets New Challengers

Research from Counterpoint puts the European group's share of the smart-glasses segment at just under 84%, a position built on manufacturing frames for Ray-Ban and Oakley. Yet the competitive field is thickening: Google and Samsung are preparing their own autumn entries into the category.

The regulatory and competitive pressure arrives as the underlying business still shows firm demand. In the second quarter of 2026, revenue rose 7.2% to EUR 7.692 billion. Myopia solutions grew 24%, while sales of AI-powered glasses nearly doubled over the same stretch. First-half free cash flow reached EUR 1.07 billion, and adjusted operating profit climbed 15% at constant currency, even as unfavorable FX effects weighed on the reported figure. Over the past twelve months, management bought back EUR 1.2 billion of its own stock.

RBC Cuts Its Target, Keeps Its Rating

RBC adjusted its expectations to the shifting landscape on Wednesday, lowering its price target to EUR 190 from EUR 230 while reaffirming an Outperform rating. The revised objective implies roughly 30% upside from current levels.

EssilorLuxottica had already made its institutional pitch at the UBS Luxury Conference on September 16, spotlighting both connected eyewear and specialized ophthalmic treatments supported by demographic trends. On valuation, the stock now trades in line with the European medical-technology average of 26.7, but well below the broader sector benchmark of 34.8. Whether that discount narrows will hinge largely on how well the new device generations are received in the market.