National Vision downgraded to Equal Weight from Overweight at Wells Fargo

Wells Fargo analyst Zachary Fadem downgraded National Vision (EYE) to Equal Weight from Overweight with a price target of $20, down from $30. The company’s fiscal 2023 already faces structural challenges, and the end of its decade partnership with Walmart (WMT) “adds insult to injury,” the analyst tells investors in a research note. Without Walmart, National Vision is a “cleaner” story, with higher growth, higher gross margin no more Walmart overhang, says the firm. However, Wells adds that it is hard to replace 15%-20% of lost sales overnight in a structurally challenged, higher cost environment.