Warby Parker (NYSE: WRBY ) was lifted to Outperform from In Line at Evercore ISI on Tuesday, with analysts assigning the stock a $20 price target, implying a potential 50% upside.
The analysts said the firm sees a fundamental inflection story for the company based on product and marketing developments.
In addition, they point to positive survey results, upside to Street estimates, an "intrinsically attractive and asymmetrical risk-reward outlook," and a growth-adjusted valuation that is "highly attractive vs. peers."
"We believe '24 is likely to be an inflection year for Warby, in terms of revenue growth and EBITDA margin expansion," the analysts wrote, stating there are four key developments, including ongoing Progressives penetration, the store openings ramp-up, marketing spend reacceleration and holistic vision care penetration.
Meanwhile, they noted that the firm's proprietary survey details healthy Sat Scores for Warby customers and above-industry average re-purchase intent among these customers.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.