Warby Parker downgraded to Neutral on growth concerns at Citi

Citi analyst Paul Lejuez downgraded Warby Parker to Neutral from Buy with a price target of $13, down from $26. The analyst left the Q4 print and 2023 guidance more cautious about the company’s near and long term growth prospects. The firm now has little conviction that Warby can return to its initial target of 20% sales growth annually. Although the stock has significantly underperformed, dropping 56% over the past 12 months, "it is time to step aside," writes the analyst. Citi dropped its valuation multiple to reflect lower growth visibility and recent volatility in the business.