Warby Parker initiated with a Neutral at UBS

UBS analyst Mark Carden initiated coverage of Warby Parker with a Neutral rating and $13 price target. The company is positioned to benefit from favorable demographic trends, including an aging population and societal changes such as increased screen time, the analyst tells investors in a research note. However, its revenue growth has pulled back recently, and it currently faces a combination of competition from other low cost players and challenges in growing managed care penetration, says the firm. UBS thinks Warby Parker’s valuation balances its top line potential and the current uncertainty.