Guggenheim Keeps Their Buy Rating on National Vision Holdings Inc

In a report released yesterday, Robert Drbul from Guggenheim reiterated a Buy rating on National Vision Holdings Inc (NASDAQ: EYE), with a price target of $46. The company’s shares closed yesterday at $31.97.

Drbul wrote:

“We continue to see several tailwinds to revenue growth and, despite trading at a premium valuation, we would use the weakness YTD as an incremental opportunity to accumulate (-21.3% vs. S&P 500 +1.4%). 1Q is EYE’s largest quarter, but there has recently been some noise as the timing of tax refunds continues to elongate the peak selling season. We believe it is prudent to look at the performance of the business in 1H18 vs. 1H17. In 1Q17, EYE experienced its slowest quarter of consolidated comp growth (+4.4%; AB +6.9%; EGW +3.9%). Important to our L-T thesis, EYE experienced strong demand in 2Q17 (+9.1% consolidated comp growth; AB +12.2%; EGW +9.2%), demonstrating the non-discretionary nature of the business. Weather was also a slight headwind in the quarter. We now expect 80bps of QoQ consolidated comp acceleration in 2Q18, resulting in a +5.0% comp in 1H18.”

According to TipRanks.com, Drbul is a 5-star analyst with an average return of 14.5% and a 77.1% success rate. Drbul covers the Services sector, focusing on stocks such as Lululemon Athletica Inc, Ascena Retail Group, and Wal-Mart Stores Inc.

Currently, the analyst consensus on National Vision Holdings Inc is Strong Buy and the average price target is $42, representing a 31.4% upside.

In a report released yesterday, Wells Fargo also maintained a Buy rating on the stock with a $40 price target.

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National Vision Holdings Inc’s market cap is currently $2.46B and has a P/E ratio of 51.62. The company has a Price to Book ratio of 3.62.

Based on the recent corporate insider activity of 22 insiders, corporate insider sentiment is negative on the stock.

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National Vision Holdings, Inc. engages in optical retail. It specializes in eye care and eyewear. It operates through Owned and Host, and Legacy segment. The Owned and Host segment includes two brands, America’s Best and Eyeglass World, and Vista Optical locations in Fred Meyer stores.