JMP Securities Starts Warby Parker Inc. (WRBY) at Market Perform

JMP Securities analyst Nicholas Jones initiates coverage on Warby Parker Inc. (NYSE: WRBY) with a Market Perform rating.

The analyst comments "Warby Parker Inc. is a disruptor within the U.S. vision market, and we expect its position to continue to strengthen, particularly as its holistic vision care offering gains traction. Given the high fragmentation of the vertical, we are confident WRBY can continue deploying its omnichannel direct-to-consumer playbook, providing consumers a compelling e-commerce channel while rolling out more storefronts in the U.S., to gain market share. However, given prior lofty investor expectations for top-line growth, its recent slowdown in customer growth has weighed on the stock's valuation. Though prescription eyeglasses can be considered somewhat non-discretionary, a consumer may not need to purchase new glasses if their prescription has not changed. Accordingly, a difficult macro environment could potentially challenge consumer spending patterns within the category. In summary, we see relatively limited downside from current valuation levels. However, given the challenging macro backdrop, we do not have line of sight to meaningful reacceleration in top-line growth, which in our view, limits WRBY's upside potential over the next twelve months. Accordingly, we initiate coverage of WRBY with a Market Perform rating."

For an analyst ratings summary and ratings history on Warby Parker Inc. click here. For more ratings news on Warby Parker Inc. click here.

Shares of Warby Parker Inc. closed at $11.61 yesterday.

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