BTIG's Rating and Price Target#
BTIG has reaffirmed a Buy rating for Warby Parker Inc. (NYSE:WRBY) and set a price target of $32.00 ahead of the company's first-quarter earnings report, which is scheduled for May 7. Currently, Warby Parker's stock trades at $22.12, significantly lower than BTIG's target and the highest analyst consensus of $35. However, some data suggests that the stock might be overvalued at its current price based on Fair Value analysis.
Expectations for Earnings#
BTIG anticipates that Warby Parker's first-quarter results will meet expectations, with full-year results expected to be at the upper end of the company's guidance. However, BTIG also cautioned that achieving these results could be challenging if the company's core business trends remain inconsistent.
Future Innovations#
A key factor mentioned by BTIG is the upcoming launch of AI-powered glasses in collaboration with Google. While this partnership is seen as a potential growth driver, BTIG believes its impact on the stock may not be felt until 2027 and beyond. In the near term, stock price movements may be more influenced by news related to this launch rather than the company's core business performance.
Recent Performance and Challenges#
Warby Parker recently reported its fourth-quarter 2025 earnings, which fell short of expectations. The company posted an earnings per share (EPS) of -$0.05, missing the forecast of $0.05, resulting in a significant negative surprise. Revenue for the quarter was $211.97 million, slightly below the expected $213.11 million. Despite these setbacks, Piper Sandler has maintained an Overweight rating on Warby Parker with a price target of $32. The company has faced challenges in meeting market expectations, with its revenue guidance for the current quarter falling short of double-digit growth targets.