BofA raises National Vision stock rating, target to $22 from $13

Published 07/05/2025, 20:32
BofA raises National Vision stock rating, target to $22 from $13

On Wednesday, BofA Securities shifted its perspective on National Vision Holdings (NASDAQ:EYE), upgrading the company’s stock rating from Underperform to Buy. Accompanying this upgrade, the firm also increased the price target for National Vision’s shares to $22.00, a significant rise from the previous target of $13.00. The new target represents substantial upside potential from the current stock price of $15.35, with the stock already showing strong momentum with a 7.94% gain over the past week.

The change in rating and price target suggests a newfound confidence from BofA Securities in the optical retail company’s market performance potential. The substantial adjustment in the price target indicates an expectation for National Vision’s stock to perform notably better than previously anticipated.

National Vision Holdings, known for operating a network of retail eyewear stores across the United States, has caught the attention of BofA Securities analysts with this positive reassessment. The new Buy rating signals a recommendation that investors should consider adding National Vision to their portfolios based on the firm’s analysis. According to InvestingPro, while the company isn’t currently profitable, analysts expect it to return to profitability this year. InvestingPro offers 8 additional key insights about National Vision’s financial health and growth prospects.

The stock market often reacts to such analyst upgrades and revised price targets, as these reflect in-depth research and projections regarding a company’s financial health and future prospects. While the immediate impact on National Vision’s stock price following this announcement remains to be seen, upgrades like this can influence investor sentiment and trading activity.

Investors and market watchers will likely monitor National Vision’s performance in the coming weeks to see if the company’s stock moves towards the new price target set by BofA Securities. The upgrade and revised price target provide a more optimistic outlook for National Vision, suggesting potential growth ahead.

In other recent news, National Vision Holdings Inc. reported its first-quarter 2025 earnings, showcasing a robust financial performance that exceeded expectations. The company achieved an earnings per share (EPS) of $0.34, surpassing the forecast of $0.32, while revenue was slightly under the anticipated $510.33 million at $510.3 million. Despite the minor revenue shortfall, the strong EPS led to a positive market reaction, with the company raising its full-year guidance for net revenue and adjusted operating income. National Vision plans to open 30 to 35 new stores in the coming year, contributing to its growth strategy. The company is also addressing potential cost increases from tariffs, estimated to impact product costs by $10 million to $15 million. Analysts have noted that National Vision is well-positioned to mitigate these impacts through pricing actions and cost reduction efforts. The company’s strategic initiatives, including new product launches and store openings, are driving growth, as evidenced by a 5.7% increase in net revenue year-over-year. National Vision’s management transition is underway, with Alex Wilkes set to succeed Reed Foss as CEO, reinforcing the company’s focus on continued transformation and growth.

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