Analyst Paul Lejuez of Citi maintained a Buy rating on National Vision Holdings, boosting the price target to $40.00.
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Paul Lejuez has given his Buy rating due to a combination of factors, starting with National Vision’s strong same-store sales performance and successful execution on strategic initiatives such as growing insured customers and shifting mix toward higher-priced frames and premium lenses, which support healthier margins and a more resilient customer base. He also points to early traction of AI-enabled eyewear, including the planned rollout of Meta AI glasses across the full store fleet, as a structural growth driver that should enhance National Vision’s role as a key distribution partner in this emerging category.
In addition, management commentary reinforces confidence in continued comparable sales growth at a mid-single-digit pace, ongoing EBIT margin expansion largely from SG&A leverage, and further mix upgrades in premium lenses and branded frames, all achieved even under conservative traffic assumptions. With the shares trading at what he views as an attractive EV/EBITDA multiple relative to the company’s growth and margin potential, Lejuez concludes that the risk/reward profile is favorable, underpinning his Buy recommendation on EYE.
Lejuez covers the Consumer Cyclical sector, focusing on stocks such as Abercrombie Fitch, Tapestry, and Ralph Lauren. According to TipRanks, Lejuez has an average return of 12.2% and a 60.78% success rate on recommended stocks.
In another report released today, Barclays also maintained a Buy rating on the stock with a $38.00 price target.