Evercore believes the company’s tariff mitigation strategy is working as it diversifies its global supplier mix, selectively raises prices, and closely manages operating expenses.
Key analysts raised their price targets on Warby Parker (WRBY) shares after the eyewear company reported strong second-quarter results and raised its full-year revenue view last week.
Morgan Stanley raised the firm’s price target on Warby Parker to $20 from $16, adding that it expects a sales pullback in the latter part of the year.
TD Cowen stated that the retailer is well-positioned to benefit from wearable AI, leveraging its direct-to-consumer expertise in conjunction with Google’s (GOOG) AI models.
In May, the two companies announced plans to co-develop smart AI glasses. As part of the deal, Google committed $150 million, including an equity investment in Warby Parker, toward the project.
Evercore, which raised its target to $28 from $24, stated that the company’s tariff mitigation strategy appears to be working as it diversifies its global supplier mix, selectively raises prices, and closely manages operating expenses.
Currently, eight analysts rate WRBY as ‘buy’ or higher, and seven rate it ‘hold,’ according to Koyfin data. Their average price target is $26.23, which signals an over 12% upside from the last close.
Warby Parker is known for affordable eyewear, holding its base collection price at $95 for years, and social messaging around donating glasses to customers in need. The company was listed on the New York Stock Exchange in September 2021.
On Stocktwits, the retail sentiment shifted to ‘bullish’ as of early Monday, from ‘neutral’ the previous day, with several users noting the recent price target hikes. Warby Parker shares are down 3.6% year-to-date.
The company reported an adjusted loss of $0.01 per share on revenue of $214.5 million in the second quarter, beating Wall Street estimates on both counts.
It raised its 2025 revenue guidance to a $880 million to $888 million range, from its earlier range of $869 million to $886 million.
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