Warby Parker Inc. (NYSE:WRBY) stock rose Monday as investors rotated into growth stocks and the Consumer Discretionary sector led the broader market. The Nasdaq gained 1.34%, while the S&P 500 advanced 1.12%.
Adding to Monday’s positive sentiment, Bank of America (BofA) initiated coverage of Warby Parker on Monday with a Buy rating and a $33 price forecast, saying the eyewear retailer has “plenty more than meets the eye” as its transition into a full-service optical retailer creates multiple long-term growth opportunities.
The brokerage’s $33 price forecast implies about 13% upside from Monday’s share price of $29.24. BofA based its valuation on 23x enterprise value-to-EBITDA, citing expectations for double-digit revenue growth and 100 to 200 basis points of annual EBIT margin expansion.
AI Glasses, Sports Eyewear Seen As Growth Catalysts
BofA said Warby Parker is expanding beyond its core $95 prescription eyewear offering through several new initiatives.
