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Investing.com - Roth/MKM initiated coverage on National Vision Holdings (NASDAQ:EYE), a $1.94 billion market cap optical retailer currently trading at $24.55, with a Buy rating and a $36.00 price target on Wednesday. The stock has delivered an impressive 135.6% return year-to-date.
The research firm cited National Vision’s ongoing transformation under new management as a key factor in its positive outlook for the optical retailer.
Roth/MKM highlighted the company’s fresh approach to pricing and its strategy of targeting attractive managed care customers, which it believes will revitalize National Vision’s core America’s Best and Eyeglass World brands.
The firm expects these initiatives to re-accelerate comparable store sales growth, which, combined with planned store expansion, should drive sales growth exceeding current consensus estimates through 2027.
Roth/MKM also anticipates a return to normalized operating margins for National Vision, which it projects will lead to improved earnings power for the company.
In other recent news, National Vision Holdings has been the focus of several analyst updates and strategic financial moves. UBS raised its price target for the company to $30, up from $20, while maintaining a Buy rating, reflecting a significant upward revision. Barclays (LON:BARC) also upgraded National Vision’s stock rating to Overweight from Equalweight, increasing its price target to $30 from $17, citing the company’s transformation efforts and broader customer focus. BofA Securities followed suit, raising their price target to $26 from $22, after a visit to the company’s headquarters and expressing confidence in National Vision’s strategic initiatives.
Additionally, BMO Capital Markets increased its price target for National Vision to $19 from $13, retaining a Market Perform rating. This decision came after discussions with the company’s management, who expressed confidence in driving comparable store sales through various initiatives. In a strategic financial move, National Vision settled its $84.8 million of 2.5% unsecured convertible senior notes using a combination of cash reserves and its revolving credit facility. Chief Financial Officer Chris Laden emphasized the company’s robust cash generation and solid financial position in facilitating this settlement. These developments reflect National Vision’s ongoing efforts to enhance shareholder value and expand its market presence.
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