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On Thursday, BTIG analyst Janine Stichter increased the price target for Warby Parker Inc. (NYSE:WRBY) shares, boosting it to $30.00 from the previous $22.00, while maintaining a Buy rating on the stock. The company, currently valued at $3.09 billion, has seen its stock surge ~89% over the past six months. The adjustment comes ahead of the company’s fourth-quarter earnings report, which is scheduled to be released on Thursday, February 27, before the market opens. InvestingPro data shows 4 analysts have recently revised their earnings estimates upward for the upcoming period.
Stichter’s optimism is based on the belief that Warby Parker has gained momentum and may be entering a replenishment cycle, which could add to the company’s market share growth narrative. This optimism appears supported by the company’s solid revenue growth of 13.47% and healthy gross margin of 55.32%. The analyst slightly raised the fourth-quarter and full-year 2025 estimates, positioning them above consensus expectations.
Despite the positive outlook and the raised price target, Stichter cautioned investors about the potential for a conservative guidance from the company. This caution stems from challenging comparisons in the first quarter and the management’s historical tendency towards conservatism. According to InvestingPro analysis, while the company maintains strong liquidity with a current ratio of 2.47, the stock appears overvalued based on their Fair Value model. Discover 10+ additional exclusive insights and detailed financial analysis with an InvestingPro subscription.
Looking at the bigger picture, BTIG sees a continued opportunity for Warby Parker to capture untapped market share and to drive margin expansion through fixed cost leverage. The increased price target reflects higher multiple expectations and estimates, as stated by the analyst.
Warby Parker’s upcoming earnings report is highly anticipated, as it will provide further insight into the company’s performance and potential growth trajectory as forecasted by BTIG.
In other recent news, Warby Parker has been the subject of several analyst reports that highlight its financial and market positioning. Citi analysts downgraded Warby Parker’s stock from Neutral to Sell, despite raising the price target from $19.00 to $23.00, citing an overvaluation and concerns over sales dynamics. Evercore ISI also downgraded the stock from Outperform to In Line, setting a price target of $23.00, and noted that the current share price reflects the company’s fundamentals, with no immediate catalysts for further growth. Meanwhile, Loop Capital Markets increased their price target from $19.00 to $27.00, maintaining a Hold rating, based on improved demand trends and positive revenue projections for the fourth quarter of 2024.
Baird maintained an Outperform rating and raised the price target to $30.00, highlighting Warby Parker’s market share growth potential and strategic initiatives in the eyecare market. The company has been expanding its retail footprint, with plans to open around 40 new stores annually, and its digital business is showing signs of recovery post-pandemic. Analysts from Baird also emphasized Warby Parker’s comprehensive eyecare strategy and competitive pricing as key growth drivers. These recent developments illustrate a range of perspectives on Warby Parker’s financial health and market positioning, with price targets varying based on differing assessments of valuation and growth potential.
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