National Vision Holdings: Balancing Optimism and Caution Amid Mixed Recovery

Simeon Siegel, an analyst from BMO Capital, maintained the Hold rating on National Vision Holdings (EYE – Research Report). The associated price target is $19.00.

Simeon Siegel has given his Hold rating due to a combination of factors that reflect both the strengths and challenges faced by National Vision Holdings. The management team has shown optimism and confidence in their strategies to drive comparable sales through pricing and advertising initiatives. However, while managed care has stabilized post-COVID, cash pay has not rebounded as strongly, indicating a mixed recovery in customer spending patterns.
Furthermore, the company is focusing on improving gross profit dollars and enhancing marketing efficiency, but there is a cautious approach to new store openings as they work on operational improvements. Despite these positive steps, the valuation of the stock, in Siegel’s view, does not currently justify a more aggressive rating, leading to the Hold recommendation.

In another report released on May 9, Barclays also maintained a Hold rating on the stock with a $17.00 price target.

Based on the recent corporate insider activity of 24 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of EYE in relation to earlier this year.