Robert Ohmes, an analyst from Bank of America Securities, reiterated the Sell rating on National Vision Holdings (EYE – Research Report). The associated price target is $13.00.
Robert Ohmes has given his Sell rating due to a combination of factors impacting National Vision Holdings. Despite reporting a slight increase in adjusted comparable sales and a better-than-expected adjusted EPS for the fourth quarter, the company faces challenges such as declining customer traffic and a shorter holiday selling season. These factors, coupled with uncertainties in the optical repurchase cycle and competitive pressures, contribute to a cautious outlook.
Additionally, while National Vision Holdings has undertaken strategic initiatives to target more valuable customer segments and optimize costs, the execution risks and inflationary pressures remain significant concerns. The company’s price objective is set at $13, reflecting these ongoing risks and uncertainties, which justify the Underperform rating. The valuation adjustments and the potential impact of wage and product cost inflation further support the conservative stance taken by Robert Ohmes.