Intel stock spikes after report of possible US government stake
On Friday, Telsey Advisory Group adjusted its outlook on Warby Parker Inc. (NYSE:WRBY), reducing the company’s price target to $22 from the previous $30, while maintaining an Outperform rating on the stock. According to InvestingPro data, the stock has seen a YTD decline of over 31%, with analyst targets ranging from $16 to $30.
The decision follows Warby Parker’s first-quarter financial results, which Telsey analyst Dana Telsey described as solid, particularly highlighting the company’s adjusted EBITDA beat due to non-marketing cost controls. While revenues and gross margins fell slightly below expectations, the company maintained a healthy gross profit margin of 55.3% and achieved revenue growth of nearly 14% over the last twelve months. Telsey noted Warby Parker’s continued market share growth in the optical industry.
The company’s active customer base has been growing for seven consecutive quarters, which is seen as a positive indicator of sustained momentum. The introduction of contact lenses and premium frames and lenses was also mentioned as a favorable development. However, the second-quarter outlook provided by Warby Parker was slightly lower than consensus expectations, but still pointed to double-digit top-line growth and a robust EBITDA margin.
Telsey also addressed the broader financial outlook, acknowledging the conservative nature of the company’s widened forecast for FY25. This revision takes into account the impact of China tariffs, though the updated EBITDA outlook aligns with previous consensus. Telsey’s commentary emphasized Warby Parker’s focus on customer service, growth investment, and tariff impact mitigation moving forward.
The firm continues to view Warby Parker as a disruptive force in the traditional eyewear retail market, which has been characterized by lackluster shopping experiences and poor value propositions. With a strong customer base and a vertically integrated model, Telsey anticipates Warby Parker will achieve sustainable, profitable growth over the long term. InvestingPro analysis indicates the company is currently trading above its Fair Value, with a high EV/EBITDA multiple of 75.7x. The revised price target reflects a 20.0x multiple on the firm’s two-year forward EBITDA estimate, a moderation from the company’s historic next twelve months (NTM) multiple of 22.6x and the recent NTM multiple of 18.7x. For deeper insights into Warby Parker’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, Warby Parker reported its Q1 2025 financial results, revealing a revenue increase to $223.8 million, up 11.9% year-over-year, though slightly below the anticipated $225.46 million. The company’s earnings per share (EPS) fell short of expectations, coming in at $0.03 compared to the forecast of $0.11. Despite these mixed results, Warby Parker’s adjusted EBITDA of $29.2 million, representing a 13.1% margin, exceeded analyst predictions. Warby Parker’s management has updated its fiscal year 2025 outlook, projecting full-year revenue between $869 million and $886 million, indicating 13-15% growth. The company plans to open 45 new stores, including five shop-in-shops within Target (NYSE:TGT) locations, and anticipates an adjusted EBITDA range of $91 million to $97 million. Evercore ISI recently cut Warby Parker’s stock price target from $24 to $22 while maintaining an In Line rating, citing softer consumer sentiment and uncertainties related to tariffs and macroeconomic conditions. The company continues to diversify its supply chain to mitigate tariff impacts, anticipating a gross margin impact of 200-300 basis points for the full year. Warby Parker is also making selective price adjustments and strategic expense reductions to maintain a strong financial profile amid these challenges.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.