In a report released on February 28, Mark Altschwager from Robert W. Baird maintained a Buy rating on Warby Parker (WRBY – Research Report), with a price target of $18.00.
Mark Altschwager has given his Buy rating due to a combination of factors including Warby Parker’s solid fundamental outlook and the potential for strong earnings growth. Despite Warby Parker’s slight miss on EBITDA in the fourth quarter, which was attributed to higher revenue deferrals and strategic investments in customer acquisition, the guidance for fiscal 2024 aligns with expectations. There appears to be potential for upside, given the management’s positive tone, promising early momentum in the first quarter, and an expanding relationship with Versant Health. The company’s strategic positioning and robust growth prospects, with expectations of over 30% EBITDA growth in 2024, underpin Altschwager’s optimistic stance and his maintenance of an $18 price target.
Additionally, the report indicates that Warby Parker is driving revenue growth through increased customer spending and expansion into new product categories, along with a growing number of active customers. The retail segment has been a key revenue driver, with new store openings and modest increases in store productivity. The company’s guidance suggests continued revenue growth, with a focus on both retail expansion and a forecasted rebound in e-commerce. The expected improvements in gross margin and EBITDA, largely driven by scale efficiencies and fixed SG&A costs, are viewed as positive indicators of the company’s financial health. Altschwager’s outlook remains largely unchanged despite the recent pullback in shares, suggesting that the current market volatility presents a compelling entry point for long-term investors.
In another report released yesterday, Piper Sandler also assigned a Buy rating to the stock with a $22.00 price target.
See Insiders’ Hot Stocks on TipRanks >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Warby Parker (WRBY) Company Description:
Warby Parker Inc is engaged in designing and development of designer prescription glasses and contacts to eye exams and vision tests.
Read More on WRBY:
