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Warby Parker Rated Buy by Goldman, Others; Shares Rise

'We view WRBY as a high-growth, omni-channel brand with exposure to the structurally growing vision-care market," says Goldman.
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Warby Parker  (WRBY) - Get Warby Parker Report shares rose Monday after the eyewear and eye services provider received buy ratings from Goldman Sachs and other analysts based on fundamentals.

Warby went public in a direct listing Sept. 29.

Goldman analyst Brooke Roach initiated coverage with a $72 price target to go with her buy rating. The stock recently traded at $57.42, up 0.86%

“We view WRBY as a high-growth, omni-channel brand with exposure to the structurally growing vision-care market,” she wrote in a commentary, adding the firm's enthusiasm was underpinned by Warby Parker’s strong brand, expanded brick-and- mortar footprint, ability to capture market share and EBITDA margin improvement.

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Further, “relative to other stocks in our coverage universe, we believe WRBY screens well among key investor concerns, such as supply chain, freight, and first-half 2022 growth momentum,” Roach said.

“Initially an e-commerce disruptor that has since diversified to a true omni-channel business, we believe Warby Parker’s strong brand is evidenced by high NPS [net promoter scores], a premium design-forward product at a unified price point and multi-channel differentiated customer service,” she said.

Warby’s arsenal includes “telehealth offerings, app-based virtual programs (try-on and prescription check) and at-home try on programs,” Roach said.

As for other analysts, Citi rates Warby buy with a $67 price target, Cowen rates it outperform with a $66 price target, Baird rates it outperform with a $68 price target and Telsey Advisory Group rates it outperform with a $66 price target.

Others including Evercore ISI rate Warby inline with a $54 price target, while Morgan Stanley rates it equal weight with a $57 price target. 

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