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The analysts said the firm sees a fundamental inflection story for the company based on product and marketing developments.
In addition, they point to positive survey results, upside to Street estimates, an “intrinsically attractive and asymmetrical risk-reward outlook,” and a growth-adjusted valuation that is “highly attractive vs. peers.”
“We believe ’24 is likely to be an inflection year for Warby, in terms of revenue growth and EBITDA margin expansion,” the analysts wrote, stating there are four key developments, including ongoing Progressives penetration, the store openings ramp-up, marketing spend reacceleration and holistic vision care penetration.
Meanwhile, they noted that the firm’s proprietary survey details healthy Sat Scores for Warby customers and above-industry average re-purchase intent among these customers.
