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UPDATE: Warby Parker Inc. (WRBY) PT Lowered to $16 at Evercore ISI

August 11, 2022 3:10 PM EDT
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Price: $15.40 -0.77%

Rating Summary:
    6 Buy, 5 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 4 | Down: 17 | New: 8
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(Updated - August 11, 2022 3:11 PM EDT)

Evercore ISI analyst Mark Mahaney lowered the price target on Warby Parker Inc. (NYSE: WRBY) to $16.00 (from $17.00) while maintaining a In Line rating.

The analyst comments "We are maintaining our In Line rating on WRBY post In-Line & Lower Q2 EPS results. Revenue of $150MM came in in-line with ISI/Street, while EBITDA of $6MM came in modestly ahead. WRBY lowered its FY22 guidance to well below the Street, citing Macro headwinds, with store sales productivity levels and ecommerce trends beginning to soften in May and into July. Fundamentally, trends improved, with Revenue Growth accelerating from 10% Y/Y in Q1 (Omicron impacted) to 14% in Q2 and EBITDA Margin expanding from 1% in Q1 to 4% in Q2. Key highlights include: 1) 30K Active Customer Net Adds, which was below our 40K estimate and impacted by Macro and reduced marketing spend; 2) Cost reduction steps in the form of reductions to corporate personnel of 63 people; and 3) Reaffirmed commitment to 100-200 bps of EBITDA Margin expansion in ’23 and beyond. We are lowering estimates and our PT to $16."


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