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On Friday, Jefferies analyst Brian Tanquilut increased the price target for National Vision Holdings (NASDAQ:EYE) stock to $14.50, up from the previous target of $13.00, while reaffirming the firm’s Buy rating on the shares. Currently trading at $11.79, the stock has shown resilience with a 21% gain over the past six months, despite a recent 8% decline last week. Tanquilut cited the company’s improving fundamentals as the primary reason for the positive outlook on the stock’s near-term (NT) momentum.
National Vision Holdings, a company specializing in eye care and eyewear retail, has been actively working on strategies to expand its customer base and stabilize its earnings. With annual revenue of $1.8 billion and a gross profit margin of 58%, the company maintains a solid market position despite current challenges. According to InvestingPro data, while the company faces some headwinds with short-term obligations exceeding liquid assets, analysts expect a return to profitability this year. These initiatives include attracting more insurance-covered patients, expanding service capacity with virtual exam options, and implementing new marketing efforts.
These strategic moves by National Vision are seen as driving volume improvements, which have contributed to the stabilization of the company’s near-term earnings. The analyst’s maintained Buy rating reflects confidence in the company’s direction and the potential for continued stock performance growth.
Investors and market watchers will likely monitor National Vision’s progress as it continues to adapt to consumer needs and leverage technology to enhance its service offerings. With the increased price target, Jefferies signals its belief that National Vision Holdings is on a trajectory that could benefit shareholders in the near term.
In other recent news, National Vision Holdings reported its fourth quarter 2024 earnings, surpassing expectations with an earnings per share (EPS) of -$0.04, compared to the forecasted -$0.07. The company’s revenue also exceeded projections, reaching $437.3 million against the anticipated $432.83 million. For the full year, National Vision’s net revenue rose by 3.8% to $1.823 billion. Looking ahead, the company has projected net revenue for 2025 to be between $1.901 billion and $1.955 billion, with an EPS range of $0.52 to $0.64. Citi analyst Paul Lejuez recently adjusted the price target for National Vision to $13.00 from $12.00, maintaining a Neutral rating. This adjustment follows the company’s strategic shift towards focusing more on managed care customers, which now represent 40% of its revenue. The company plans to open 30 to 35 new stores and expand its product offerings in 2025.
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