What Happened?
Shares of optical retailer National Vision (NYSE: EYE) jumped 3.8% in the afternoon session after Barclays upgraded the stock and significantly raised its price target. The investment bank upgraded its rating on the optical retailer to "Overweight" from "Equal-Weight" and boosted its price target to $30 from $17, an increase of over 76%.
Barclays cited several factors for its increased optimism, including a broader customer focus that could expand National Vision's market and drive ticket growth. The firm also pointed to improved optometrist coverage, aided by remote exam technology and better recruitment efforts. Analysts at Barclays expressed confidence in the new management team's ability to guide the company's transformation and noted that positive inventory checks suggest potential for margin expansion. The bank also highlighted that National Vision has lower exposure to tariffs compared to its peers, which could benefit the company in the current fiscal year.
After the initial pop the shares cooled down to $24.37, up 4.4% from previous close.
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What Is The Market Telling Us
National Vision’s shares are very volatile and have had 22 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
National Vision is up 126% since the beginning of the year, and at $24.37 per share, has set a new 52-week high. Investors who bought $1,000 worth of National Vision’s shares 5 years ago would now be looking at an investment worth $826.16.
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