William Blair analyst Dylan Carden has maintained their bullish stance on WRBY stock, giving a Buy rating today.
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Dylan Carden has given his Buy rating due to a combination of factors that suggest Warby Parker’s potential for growth and value creation. Despite missing first-quarter expectations and revising full-year guidance lower, the company is actively working to mitigate the impact of tariffs through strategic measures such as selective price increases, reducing reliance on China for production, and implementing cost reductions. These efforts are expected to offset the potential gross margin dilution caused by tariffs.
Furthermore, Warby Parker’s retail expansion and adjusted EBITDA growth projections are promising, with expectations of 25%-30% growth over the next five years. The company’s strategy includes low-double-digit revenue growth from store expansions, modest online growth, and maintaining stable gross margins. These factors, combined with a reduction in stock-based compensation and operating income leverage at scale, provide a compelling value proposition at current share levels. Carden anticipates that as tariff-related concerns diminish, investor confidence will likely increase, driven by the scarcity of tangible retail expansion stories.
In another report released today, 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.