TD Cowen Reaffirms Buy on Warby Parker, Sees Strong Growth Path and Margin Upside

TD Cowen reiterated its Buy rating and $24 price target on Warby Parker (NYSE:WRBY), highlighting the eyewear retailer as one of its top small- and mid-cap picks due to its expanding market share, rising customer base, and consistent profitability gains.

The firm pointed to the company’s solid execution on marketing efficiency, which is driving faster active customer growth and improving returns on investment. Additionally, the recent partnership with Google Glass is seen as a gateway to a larger total addressable market and future revenue upside.

Warby Parker has been steadily expanding EBITDA margins in line with its long-term goal of 100 to 200 basis points of improvement annually and reached GAAP profitability in the first quarter. Analysts see further margin expansion opportunities through disciplined non-marketing SG&A spending and increased sales volume, supported by greater glasses adoption.

TD Cowen projects continued revenue growth in the low to mid-teens range, fueled by aggressive store expansion—from 276 locations in fiscal 2024 to a long-term goal of 900—alongside gains in e-commerce, which currently accounts for about 30% of sales, and ongoing comp sales strength. With conservative macro and tariff assumptions already embedded in guidance, the firm sees room for upside surprises.