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On Friday, UBS analyst Mark Carden increased the price target for Warby Parker Inc. (NYSE:WRBY) to $23, up from the previous $20, while keeping a Neutral stance on the stock. The company’s stock has shown remarkable strength, delivering a 90% return over the past year according to InvestingPro data. Carden highlighted Warby Parker’s positive trajectory as the company steps into 2025, noting significant growth in its eCommerce sales, which have seen year-over-year increases in each quarter, marking the first full year of growth since 2021.
Warby Parker’s active customer base has also expanded, growing by 7.8% year-over-year, the quickest pace since the second quarter of 2022 and marking the sixth consecutive sequential rise. This growth is attributed to the successful Versant partnership and effective marketing investments, suggesting that these strategies are yielding favorable results. InvestingPro data shows the company achieved 15.16% revenue growth in the last twelve months, with analysts expecting continued profitability this year.
Despite the positive developments, Carden pointed out that the eyewear company is navigating a challenging macroeconomic environment, which makes the timing of a return to a normalized replenishment cycle uncertain. However, he believes that Warby Parker’s high-quality offerings and attractive price points position it to capture more market share in the upcoming year.
The analyst also cautioned that Warby Parker is still facing broader industry challenges, including potential tariff headwinds that could impact its performance. With these factors in mind, Carden stated that the risk-reward profile for Warby Parker seems fairly balanced at this time, leading to the decision to maintain the Neutral rating despite the improved price target.
In other recent news, Warby Parker Inc. reported its fourth-quarter 2024 earnings, revealing significant revenue growth despite missing earnings per share (EPS) expectations. The company achieved revenue of $190.6 million, surpassing the forecasted $186.76 million, but its EPS was -$0.06, below the anticipated $0.03. JMP Securities responded by raising Warby Parker’s stock target to $30, maintaining a Market Outperform rating. Analyst Nicholas Jones noted the company’s highest revenue growth quarter since 2021 and praised its strategic moves. Evercore ISI also increased its price target for Warby Parker to $24, attributing the decision to strong earnings and future growth prospects.
Warby Parker’s partnership with Target (NYSE:TGT) is another notable development, with plans to open five shop-in-shops in the latter half of 2025. This initiative is part of the company’s strategy to enhance its retail presence and accessibility. Additionally, the eyewear retailer plans to open 45 new stores in 2025, aiming to expand its physical footprint. Evercore ISI highlighted potential growth catalysts, including e-commerce recovery and EBITDA margin expansion. Despite these positive developments, the firm believes the current share price reflects Warby Parker’s strengths and growth prospects.
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