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Investing.com - BTIG raised its price target on Warby Parker Inc. (NYSE:WRBY) to $28.00 from $24.00 on Thursday, while maintaining a Buy rating following the company’s second-quarter earnings beat. The new target reflects growing confidence in the company, which has delivered a remarkable 72.83% return over the past year according to InvestingPro data.
The research firm noted that Warby Parker delivered a "high-quality beat" in Q2, with revenue momentum building in May and June and continuing into the start of Q3. With revenue growing at 13.94% and maintaining a healthy gross margin of 55.26%, BTIG highlighted significant upside in general and administrative expense leverage during the quarter.
BTIG believes tariffs have catalyzed structural margin improvement for the eyewear retailer. The company had implemented a plan to offset "the substantial majority, if not all" of tariffs when China tariffs were at 145%, and is now benefiting from G&A efficiencies and price increases as rates have decreased.
Looking ahead, BTIG sees medium-term catalysts for Warby Parker from its partnership with Target (NYSE:TGT), the upcoming launch of AI-powered glasses with Google (NASDAQ:GOOGL), and expanded in-network insurance coverage.
The firm raised its estimates to account for Warby Parker’s improved top-line and margin outlook, resulting in the higher price target while reiterating its Buy recommendation on the stock. Based on InvestingPro’s Fair Value analysis, the stock currently appears slightly overvalued, though analysts maintain targets ranging from $16 to $30 per share.
In other recent news, Warby Parker Inc. reported its second-quarter 2025 financial results. The company achieved a revenue increase to $214.5 million, surpassing the forecast of $212.94 million. However, Warby Parker posted a loss per share of $0.01, falling short of the anticipated earnings per share (EPS) of $0.08, resulting in a negative surprise of 112.5%. Despite missing the earnings estimate, the revenue growth suggests positive momentum in the company’s operations. Analysts have not yet provided updates on any potential changes to their ratings following these results. Investors may be interested in how these developments could influence future performance and strategic decisions. These results are part of the company’s ongoing efforts to enhance its market position.
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