TD Cowen analyst Oliver Chen maintained a Buy rating on Warby Parker (WRBY – Research Report) yesterday and set a price target of $20.00.
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Oliver Chen has given his Buy rating due to a combination of factors including Warby Parker’s strategic initiatives and financial performance. Despite a slight decrease in gross margin, the company’s EBITDA exceeded expectations, demonstrating effective cost management and the ability to drive profitable growth. Management is actively working to mitigate the impact of tariffs by diversifying the supply chain and implementing cost-saving measures, which could lead to potential upside if tariff rates decrease.
Additionally, Warby Parker’s valuation appears attractive, with a significant reduction in EV/EBITDA compared to earlier in the year, and the company maintains a strong financial position with no debt and healthy free cash flow. The expansion of their retail footprint and improved e-commerce performance further support the positive outlook. Although the price target was lowered to $20, the combination of these factors underpins the Buy rating, reflecting confidence in the company’s long-term growth potential.
In another report released yesterday, Telsey Advisory also initiated coverage with a Buy rating on the stock with a $30.00 price target.
Based on the recent corporate insider activity of 44 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of WRBY in relation to earlier this year.