Warby Parker Inc. (WRBY) PT Raised to $25 at Stifel

Stifel analyst Jim Duffy raised the price target on Warby Parker Inc. (NYSE: WRBY) to $25.00 (from $22.00) while maintaining a Hold rating.

The analyst commented, "4Q24 revenue increased +17.8% y/y to $190.6mn beating Stifel’s $185.7mn estimate and Street $187.6mn, while adj. EBITDA of $13.8mn split the Street estimate of $14.1mn and Stifel’s $13.6mn estimate. Stronger FY25 revenue guidance calls for $878mn to $893mn (+14-16% y/y) vs. Stifel’s $857mn and Street’s $872mn, though the adj. EBITDA guidance of $97mn at the midpoint was only modestly above prior consensus for $96.2mn (vs. Stifel’s prior $88.1mn). The new Target partnership includes test plans for 5 new shop-in-shops, and opens an intriguing new avenue for customer acquisition. Topline relies on new stores (+16% y/y units), and to a lesser extent, e-commerce growth in 2025 (guided +MSD% y/ y). Execution is encouraging, and our estimates move higher. Valuation, however, remains a consideration due to the premium multiple and capital intensity of forward growth. We reaffirm Hold; TP moves to $25 (25.0x EV/EBITDA on our FY26E adj. EBITDA estimate of $121mn)."

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