In a report released today, Paul Lejuez from Citi upgraded National Vision Holdings (EYE – Research Report) to a Buy, with a price target of $21.00.
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Paul Lejuez has given his Buy rating due to a combination of factors that make National Vision Holdings an attractive investment in the current market climate. The company offers non-discretionary products, which are essential and have consistent demand, especially during economic downturns. Additionally, National Vision Holdings is recognized for its value proposition, providing affordable eye care solutions that appeal to cost-conscious consumers. This positioning allows the company to maintain positive comparable sales even in challenging economic conditions.
Furthermore, Paul Lejuez highlights the company’s self-help initiatives aimed at boosting sales. Under new management, National Vision Holdings is retraining its sales force to focus on both selection and value, ensuring customers receive products that match their needs and insurance benefits. This strategy has led to higher average transaction values while maintaining strong customer satisfaction. The company’s recent performance, including accelerated comparable sales and raised guidance, supports the positive outlook, prompting an increase in the target price from $13 to $21, with a favorable risk/reward profile.
Lejuez covers the Consumer Cyclical sector, focusing on stocks such as On Holding AG, Abercrombie Fitch, and American Eagle. According to TipRanks, Lejuez has an average return of 7.7% and a 55.42% success rate on recommended stocks.
In another report released yesterday, UBS also maintained a Buy rating on the stock with a $20.00 price target.