Analyst Mark Mahaney from Evercore ISI reiterated a Hold rating on Warby Parker and increased the price target to $28.00 from $22.00.
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Mark Mahaney has given his Hold rating due to a combination of factors influencing Warby Parker’s current market position. The company has shown solid fundamental performance with notable growth in glasses sales, strategic marketing investments, and store expansion. Despite these positive developments, the gross profit margin was slightly below expectations, and there are ongoing concerns related to tariff uncertainties.
Mahaney acknowledges the potential for Warby Parker to exceed performance expectations, especially with upcoming catalysts like customer growth acceleration and new product cycles. However, he remains cautious due to the macroeconomic challenges and trade uncertainties. The retirement of CFO Steven Miller also adds an element of transition risk. Overall, while the company’s strategic initiatives are promising, the external factors and industry-wide challenges warrant a Hold rating at this time.
In another report released on August 5, Roth MKM also maintained a Hold rating on the stock with a $24.00 price target.
Based on the recent corporate insider activity of 41 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 WRBY in relation to earlier this year.