Market Overview

An Analyst Gives 8 Reasons To Buy National Vision

Share:

National Vision Holdings Inc (NASDAQ: EYE), an optic retailer company that offers products and services for eye care needs, began trading as a public company in October.

The Analyst

Jefferies' Daniel Binder initiated coverage of National Vision's stock with a Buy rating and $36 price target.

The Thesis

National Vision should be seen as an "appealing" story in the retail market, as management has executed well on a strategy which could result in its store base growing from 996 units today to over 2,100, Binder said in a research report Monday.

The bullish case for the stock is also based on: 1) strong new store economics, 2) ability to gain market share in the "fragmented" retail sector, 3) a strong defense from online players through cheap prices, 4) a low-cost structure, 5) industry-wide favorable dynamics, 6) a business profile that is seen as more recession-resistant, 7) a strong record of offering attractive comparable store sales and profit growth, and 8) a strong management team.

The company's multiple strengths should result in a 10 percent compounded annual growth rate over the next five years and a 14 percent EBITDA CAGR over the same time period, Binder wrote. 

Price Action

Shares of National Vision closed Monday's session at $30.19, up 0.7 percent.

Related Links:

32 Stocks Moving In Monday's Mid-Day Session

7 Stocks To Watch For November 20, 2017

Posted-In: Daniel Binder Eyecare IPO Jefferies retail retailersAnalyst Color Analyst Ratings

 

Related Articles (EYE)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
PLCEB. Riley FBRDowngrades59.0
ASPUCanaccord GenuityMaintains11.0
AAPLEvercore ISI GroupMaintains305.0
FCELCraig-HallumReinstates0.500
THTXMackie ResearchUpgrades
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Viacom Shares May Have Bottomed, Says Deutsche Bank

HMS Shares Downgraded Following Q3 Report