Warby Parker Has 'Plenty More Than Meets The Eye', Analyst Says

Warby Parker Inc. (NYSE: WRBY ) stock rose Monday as investors rotated into growth stocks and the Consumer Discretionary sector led the broader market.

The Nasdaq gained 1.34%, while the S&P 500 advanced 1.12%.

Adding to Monday’s positive sentiment, Bank of America (BofA) initiated coverage of Warby Parker on Monday with a Buy rating and a $33 price forecast, saying the eyewear retailer has “plenty more than meets the eye” as its transition into a full-service optical retailer creates multiple long-term growth opportunities.

The brokerage’s $33 price forecast implies about 13% upside from Monday’s share price of $29.24.

BofA based its valuation on 23x enterprise value-to-EBITDA, citing expectations for double-digit revenue growth and 100 to 200 basis points of annual EBIT margin expansion.

AI Glasses, Sports Eyewear Seen As Growth Catalysts BofA said Warby Parker is expanding beyond its core $95 prescription eyewear offering through several new initiatives.

The analysts highlighted the planned launch of Google- and Samsung-powered AI glasses, beginning with audio-only smart glasses in late 2026, followed by display-enabled devices.

The report said potential AI glasses revenue is not included in the company’s current guidance, creating additional upside.

The brokerage also pointed to the company’s new sports eyewear collection, broader contact lens and frame offerings, and its revised “Add a Pair and Save” promotion as drivers of higher average order values and stronger margins.

Read Also: Airline Stocks Spent 6 Years Below Covid Highs: Hormuz Snapped That Trend In Two Months Insurance Expansion Could Lift Traffic BofA expects Warby Parker’s eye care business to become a larger contributor to growth.

Eye exams represented about 7% of sales in the first quarter, while exam revenue increased 30% year over year.

According to the report, exam customers generate higher lifetime spending than customers who only purchase eyewear.

The firm also sees insurance adoption as a meaningful catalyst.

Insurance-backed orders increased to 10% in the first quarter from 8.3% of revenue in 2025.

Analysts said the company’s new out-of-network reimbursement tool should simplify claims and encourage more insured customers to shop at Warby Parker.

Warby Parker operates 337 stores and plans to open 50 more in 2026 as it works toward a long-term goal of 900 locations.

BofA estimates the company holds only about 1% to 2% of the U.S. optical market, leaving significant room for market share gains.

Analysts Highlight Risks Despite the positive outlook, BofA said near-term investments in eye exams, additional optical labs, doctor hiring and AI glasses could pressure margins.

The brokerage also cited macroeconomic uncertainty, limited in-network insurance partnerships and intense industry competition as key risks.

Technical Analysis Warby Parker continues to trade well above its major moving averages.

The stock sits 14.1% above its 20-day simple moving average and 22.2% above its 200-day simple moving average.

The 20-day moving average remains above the 50-day moving average.

In addition, the golden cross that formed in June continues to support the longer-term bullish trend.

Momentum indicators also remain constructive.

The MACD is above its signal line, while the positive histogram suggests buying momentum is strengthening.

The stock is approaching the upper end of its 52-week trading range after establishing a higher low in April and a swing high in May.

Key technical levels include resistance at $30.50 and support near $24.50.

Warby Parker Price Action Warby Parker shares were up 1.20% at $29.59 at the time of publication on Monday.

The stock is approaching its 52-week high of $31.00, according to Pro data.

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