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BofA Securities raised its price target on National Vision Holdings (NASDAQ:EYE) to $26.00 from $22.00 on Wednesday, while maintaining a Buy rating on the stock. The adjustment followed a headquarters visit and store tour at America’s Best with company executives. The optical retailer, with a market capitalization of $1.8 billion and annual revenue of $1.85 billion, has seen its stock surge nearly 99% over the past six months.
The firm cited increased confidence in National Vision’s strategic initiatives as the primary reason for the higher valuation. These initiatives include pricing actions, product assortment improvements, recruitment and retention efforts, and growth in managed care, progressive lenses, and outside prescriptions. The company maintains a healthy gross profit margin of 58.2%, and according to InvestingPro, eight analysts have recently revised their earnings estimates upward for the upcoming period.
BofA Securities now values the company at 12 times its 2026 estimated adjusted EBITDA of $192 million, up from its previous multiple of 10.5 times. The firm believes these strategic initiatives could drive upside to comparable store sales performance. InvestingPro analysis indicates the stock is trading near its Fair Value, with analysts projecting profitability this year.
The research note projects 3% comparable sales growth at America’s Best for the second half of 2025, with expectations for further improvements in 2026-2027. This outlook reflects BofA’s optimistic view on the optical retailer’s growth trajectory.
National Vision operates primarily through its America’s Best brand, which offers value-priced eyewear and eye care services throughout the United States. The company has been implementing various strategic changes to strengthen its market position in the competitive optical retail sector.
In other recent news, National Vision Holdings reported first-quarter 2025 earnings with an earnings per share (EPS) of $0.34, surpassing the forecast of $0.32. Revenue was slightly below expectations at $510.3 million compared to the forecasted $510.33 million. The company has raised its full-year guidance for net revenue and adjusted operating income, reflecting a positive outlook. Additionally, National Vision settled its $84.8 million of 2.5% unsecured convertible senior notes using cash reserves and its revolving credit facility, maintaining $268.6 million in available funds. Analyst activity also highlighted the company’s potential, with BMO Capital Markets raising its stock target to $19, Citi upgrading the stock to Buy with a new target of $21, and BofA Securities upgrading the rating to Buy with a target of $22. These upgrades reflect confidence in National Vision’s market position and growth strategies. The company continues to focus on enhancing customer experience and sales effectiveness, which has been recognized by analysts as a positive trajectory for future growth.
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