National Vision stock rating upgraded to Overweight at Barclays on transformation efforts

Published 08/07/2025, 06:42
National Vision stock rating upgraded to Overweight at Barclays on transformation efforts

Investing.com - National Vision Holdings (NASDAQ:EYE), which has seen its stock surge over 120% year-to-date, received an upgrade from Barclays (LON:BARC) on Tuesday, with the firm raising its rating from Equalweight to Overweight and significantly increasing its price target to $30.00 from $17.00. According to InvestingPro data, the stock is currently trading near its 52-week high of $24.68.

Barclays cited five key factors driving the upgrade, including the company’s broader customer focus that expands its total addressable market while creating opportunities for ticket growth. The firm also highlighted improved optometrist coverage supported by remote exam technology and enhanced recruitment efforts. This aligns with InvestingPro analysis, which indicates net income is expected to grow this year, with analysts forecasting a return to profitability.

The upgrade was further supported by Barclays’ positive inventory checks, which indicate potential for margin expansion at National Vision, which currently maintains a healthy gross profit margin of 58.2%. The firm expressed confidence in the company’s new management team that will guide its transformation. For deeper insights into National Vision’s financial health and detailed analysis, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks.

Key leadership changes mentioned include new CEO Alex Wilkes, who has served as president since August 2024 and will assume the CEO role in August 2025, along with Chris Laden who joined as CFO in March 2025, and Mark Banner (NASDAQ:BANR) who has been Chief Stores Officer and President of America’s Best since July 2024.

Barclays also noted that National Vision has below-average tariff exposure compared to other companies in its coverage universe, positioning the eyewear retailer for potential upside in fiscal year 2025.

In other recent news, National Vision Holdings has seen a series of significant developments. The company has successfully settled $84.8 million of its convertible senior notes, utilizing $59.8 million in cash reserves and the remainder through its revolving credit facility. This move highlights National Vision’s strong cash generation and financial management. BofA Securities upgraded its stock rating from Underperform to Buy, raising the price target to $22 from $13, citing increased confidence in the company’s market performance potential. Additionally, BofA Securities set a higher valuation at 12 times the estimated 2026 adjusted EBITDA.

Citi also upgraded National Vision’s stock to Buy, adjusting the price target to $21, reflecting confidence in the company’s growth trajectory and sales initiatives. BMO Capital Markets raised its price target to $19, maintaining a Market Perform rating, following discussions with National Vision’s management. These discussions emphasized strategic initiatives aimed at increasing sales and customer traffic. Collectively, these developments suggest a positive outlook for National Vision, with multiple analysts expressing optimism about the company’s strategic direction and financial health.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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