Analyst Deems Warby Parker's Google Tie-Up 'Emblematic of Long-Term Disruption'

TD Securities analyst Oliver Chen maintained a Buy rating on Warby Parker WRBY, raising the price forecast from $20 to $24.

Chen commented on Warby Parker’s newly announced collaboration with Google to create AI-enabled smart glasses designed for all-day use and compatible with both Android and iOS.

As part of the deal, Google is committing $75 million toward product development and commercialization and may invest an additional $75 million in Warby Parker stock over several years at the company’s discretion.

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Chen sees the partnership as a strong signal of Warby Parker’s long-term commitment to innovation and its potential to continue disrupting the eyewear industry.

According to the analyst, Warby Parker’s AI-powered glasses initiative with Google must succeed by leveraging advanced, context-aware AI, integrating seamlessly with everyday tools like Google Maps, and featuring versatile, stylish designs.

Chen highlights that Warby’s strong “direct-to-consumer” model and customer service could further enhance the offering, potentially boosting traffic to its 287 existing stores and increasing brand visibility and customer growth.

Over the long term, Chen sees the partnership improving customer lifetime value, encouraging broader wearable tech development, and reinforcing Warby’s tech-forward, customer-centric approach.

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The analyst estimates the U.S. smart glasses market could reach $2-$4 billion by 2030, compared to Warby Parker’s current ~$800 million revenue.

Reflecting the expanded total addressable market and acquisition potential, Chen raised his price forecast, implying a 23x EV/EBITDA multiple on FY26E estimates.

The analyst views Warby Parker’s status as a public benefit corporation as a strategic advantage, aligning profit growth with its global mission to make high-quality vision care more accessible.

He points to the company’s long-term financial model, which targets over 20% annual revenue growth, gross margins in the 58% to 60% range, and EBITDA margin gains of around 20%, with steady annual expansion of 1 to 2 percentage points.

Price Action: WRBY shares are trading higher by 3.05% to $20.96 at last check Wednesday.

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