Demystifying Warby Parker: Insights From 11 Analyst Reviews

In the last three months, 11 analysts have published ratings on Warby Parker WRBY, offering a diverse range of perspectives from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for Warby Parker, presenting an average target of $24.91, a high estimate of $32.00, and a low estimate of $18.00. Experiencing a 0.36% decline, the current average is now lower than the previous average price target of $25.00.

Investigating Analyst Ratings: An Elaborate Study

A clear picture of Warby Parker's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|---------------------|---------------|---------------|--------------------|--------------------| |Anna Andreeva |Piper Sandler |Lowers |Overweight | $20.00|$30.00 | |Jim Duffy |Stifel |Lowers |Hold | $18.00|$25.00 | |Mark Carden |UBS |Raises |Neutral | $23.00|$20.00 | |Mark Altschwager |Baird |Raises |Outperform | $32.00|$30.00 | |Dana Telsey |Telsey Advisory Group|Raises |Outperform | $30.00|$28.00 | |Dana Telsey |Telsey Advisory Group|Maintains |Outperform | $28.00|$28.00 | |Matt Koranda |Roth MKM |Announces |Neutral | $26.00|- | |Dana Telsey |Telsey Advisory Group|Maintains |Outperform | $28.00|$28.00 | |Paul Lejuez |Citigroup |Raises |Sell | $23.00|$19.00 | |Kimberly Greenberger|Morgan Stanley |Raises |Equal-Weight | $23.00|$17.00 | |Mark Mahaney |Evercore ISI Group |Announces |In-Line | $23.00|- |

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Warby Parker. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Warby Parker compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Warby Parker's stock. This examination reveals shifts in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Warby Parker's market position. Stay informed and make well-informed decisions with our Ratings Table.

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All You Need to Know About Warby Parker

Warby Parker Inc is a mission-driven, lifestyle brand that operates at the intersection of design, technology, healthcare, and social enterprise. The company predominantly derives revenue from the sales of eyewear products, optical services, and accessories. The firm sells products and services through its stores, website, and mobile apps. Revenue generated from eyewear products includes the sales of prescription and non-prescription optical glasses and sunglasses, contact lenses, eyewear accessories, and expedited shipping charges.

Key Indicators: Warby Parker's Financial Health

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Warby Parker's remarkable performance in 3M is evident. As of 31 December, 2024, the company achieved an impressive revenue growth rate of 17.79%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: Warby Parker's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -3.61%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -2.03%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Warby Parker's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -1.05%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Warby Parker's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.66.

What Are Analyst Ratings?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.