Investing.com -- Citi downgraded Warby Parker Inc (NYSE:WRBY) to "Sell" from "Neutral" given valuation concerns despite expectations of a strong fourth-quarter performance.
The eyewear retailer’s stock has surged 50% in the past three months, pushing its valuation to about 29 times Citi’s estimated 2025 EV/EBITDA, a level the bank sees as overextended.
“While we expect a strong 4Q24 with sales beating estimates, the stock has risen 50% over the past 3 months to a level we believe is overvalued,” analyst at Citi said.
Citi expects Warby Parker’s Q4 sales to rise 16.5%, exceeding consensus estimates of 15.6%, the firm flagged concerns over weaker store sales volumes and a decline in customers per store since 2022.
The bank raised its 2025 revenue growth forecast to 15% from 12.4%, reflecting stronger customer and sales-per-customer growth. Citi also increased its price target to $23 from $19 but warned that risk-reward dynamics remain unfavorable.
Related Articles
Warby Parker stock rating cut to sell by Citi on valuation concerns
Australia's Macquarie to wind down US debt capital markets arm, Bloomberg reports
USW union chief files motion to dismiss lawsuit by US Steel, Nippon Steel
免责声明:投资有风险,本文并非投资建议,以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请,作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考,不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证,投资者应自行研究并在投资前寻求专业建议。