Where Warby Parker Stands With Analysts

During the last three months, 13 analysts shared their evaluations of Warby Parker WRBY, revealing diverse outlooks from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $24.0, along with a high estimate of $32.00 and a low estimate of $17.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 8.95%.

Understanding Analyst Ratings: A Comprehensive Breakdown

The perception of Warby Parker by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Warby Parker. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Warby Parker compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Warby Parker's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Warby Parker's market standing. Stay informed and make well-considered decisions with our Ratings Table.

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Unveiling the Story Behind Warby Parker

Warby Parker Inc is a mission-driven, lifestyle brand that operates at the intersection of design, technology, healthcare, and social enterprise. The company predominantly derives revenue from the sales of eyewear products, optical services, and accessories. The firm sells products and services through its stores, website, and mobile apps. Revenue generated from eyewear products includes the sales of prescription and non-prescription optical glasses and sunglasses, contact lenses, eyewear accessories, and expedited shipping charges.

Financial Insights: Warby Parker

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Warby Parker's revenue growth over a period of 3M has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 17.79%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: Warby Parker's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -3.61%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Warby Parker's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -2.03%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Warby Parker's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -1.05%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Warby Parker's debt-to-equity ratio is below the industry average at 0.66, reflecting a lower dependency on debt financing and a more conservative financial approach.

Understanding the Relevance of Analyst Ratings

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.