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Investing.com - Stifel has raised its price target on Warby Parker Inc. (NYSE:WRBY) to $22.00 from $21.00 while maintaining a Hold rating on the eyewear retailer’s stock. According to InvestingPro data, the company, currently valued at $2.85 billion, trades at a significant EBITDA multiple of 106x.
The price target adjustment follows Warby Parker’s first-quarter 2025 performance, which exceeded expectations for both revenue and adjusted EBITDA. The company benefited from stronger new customer acquisition and adjusted SG&A leverage, primarily due to lower stock-based compensation and reduced corporate expenses.
Warby Parker has increased its fiscal year 2025 revenue guidance by $6.5 million at the midpoint, reflecting robust top-line trends at the start of the third quarter. The revised outlook suggests stronger second-half growth than previously anticipated.
The company also raised its adjusted EBITDA and adjusted EBITDA margin guidance for fiscal year 2025, expecting continued leverage within non-marketing SG&A. However, tariffs and deleverage on fixed costs will continue to negatively impact adjusted gross margin.
Store productivity improved in the second quarter of 2025 as measured by retail sales per store, but Stifel cited limited visibility into an improved ROIC profile and a premium valuation as reasons for maintaining its Hold rating. The new $22 price target reflects 21.7 times Stifel’s calendar year 2026 adjusted EBITDA estimate of $120.2 million.
In other recent news, Warby Parker Inc. reported its second-quarter 2025 financial results, showcasing a revenue increase to $214.5 million, which surpassed analyst forecasts of $212.94 million. Despite this positive revenue development, the company experienced a loss per share of $0.01, missing the expected earnings per share of $0.08. BTIG responded to these results by raising its price target for Warby Parker to $28.00 from $24.00, maintaining a Buy rating. The firm noted the company’s "high-quality beat" in revenue, particularly with momentum building in May and June and continuing into the start of the third quarter. BTIG also highlighted significant leverage in general and administrative expenses during the quarter. While the earnings per share miss was notable, the revenue growth and strategic initiatives seem to have fueled investor optimism. These developments reflect ongoing adjustments and expectations in Warby Parker’s financial strategies.
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