Citi analyst Paul Lejuez maintained a Sell rating on Warby Parker (WRBY – Research Report) yesterday and set a price target of $23.00.
Paul Lejuez has given his Sell rating due to a combination of factors impacting Warby Parker’s financial outlook. Despite the company’s sales growth surpassing expectations, the increase in selling, general, and administrative expenses has limited the upside in EBITDA. Additionally, the company’s high valuation, trading at 28 times the forecasted EV/EBITDA for 2025, is a significant concern.
Furthermore, while the partnership with Target is seen as a positive move, it is not expected to have an immediate impact on the company’s performance. The decline in active customers per store and the projected moderation in sales per customer growth also contribute to the cautious outlook. The potential impact of tariffs and the reliance on China for a significant portion of the cost of goods sold add to the uncertainties surrounding the stock’s future performance.
Lejuez covers the Consumer Cyclical sector, focusing on stocks such as Nike, Birkenstock Holding plc, and Deckers Outdoor. According to TipRanks, Lejuez has an average return of 8.6% and a 55.79% success rate on recommended stocks.