Japan records surprise trade deficit in July as exports weaken further
Monday, Citi analysts led by Paul Lejuez upgraded National Vision Holdings (NASDAQ:EYE) stock from Neutral to Buy, setting a new price target of $21.00, up from the previous target of $13.00. The upgrade reflects confidence in the company’s position in the market, citing several key factors that make the stock attractive. The stock, currently trading at $16.68 with a market capitalization of $1.32 billion, has shown remarkable momentum with a 60% gain year-to-date, according to InvestingPro data.
National Vision, known for providing affordable eyewear, has been recognized for its non-discretionary product offerings and value-driven approach. According to Citi, the company stands out due to its ability to consistently perform well throughout economic cycles and its potential for self-improvement initiatives that could further drive sales. The company maintains a healthy gross profit margin of 58.2%, demonstrating its operational efficiency despite competitive market conditions.
The analysts pointed out that National Vision’s recent performance has shown accelerating comparable store sales growth, which has led to the company beating expectations and raising its future guidance. These positive trends are encapsulated in three main reasons for the upgrade: the company’s role as a low-cost provider of essential medical products, internal initiatives to boost sales, and the momentum of comparable store sales growth.
Citi’s new price target of $21.00 is based on 9.8 times the forecasted 2025 EBITDA and 8.0 times the projected 2026 EBITDA. With the stock currently trading at 7.3 times Citi’s estimated 2025 enterprise value to EBITDA, the analysts believe that the risk/reward profile for investors is favorable.
The upgrade and new price target come as a strong vote of confidence for National Vision Holdings, suggesting that the company is well-positioned to continue its growth trajectory and deliver value to shareholders.
In other recent news, National Vision Holdings reported its first-quarter 2025 earnings, showcasing a robust performance with an earnings per share (EPS) of $0.34, surpassing the forecast of $0.32. Revenue for the quarter was $510 million, slightly below the forecasted $510.33 million, yet marking a 5.7% increase year-over-year. The company also raised its full-year guidance for net revenue and adjusted operating income, expecting net revenue to range between $1.919 billion and $1.955 billion. In addition, BofA Securities upgraded National Vision’s stock rating from Underperform to Buy, raising the price target from $13.00 to $22.00. This upgrade indicates increased confidence in the company’s market performance potential. National Vision is also expanding its operations, having opened nine new America’s Best stores while closing some underperforming locations, resulting in a 3% year-over-year increase in total store count. The company continues to focus on strategic initiatives, including new product launches and store openings, which are driving growth. Investors and market watchers are likely to monitor National Vision’s progress as it aims to meet its revised targets.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.