EYE Stock Forecast & Price Target

National Vision Holdings Inc. has demonstrated a positive trajectory in its financial outlook, with expected earnings per share (EPS) increases for FY25 and FY26, rising to $0.65 and $0.76, respectively, an adjustment that reflects improved performance compared to previous estimates. The company's revenue potential could exceed estimates if store openings accelerate or if Net Sales Proceeds (NSP) improve, with projections indicating a possible EPS of approximately $1.70 driven by higher margins and productivity gains. Additionally, National Vision's recent first-quarter results were better than anticipated, leading to an upward revision in full-year guidance, which underscores a strong operational outlook for the company.

National Vision Holdings, an optical retailer in the U.S., faces significant risks that could negatively impact its revenues and margins, particularly due to intensified competition from direct-to-consumer (DTC) brands and potential worsening of the National Store Performance (NSP). The company's projected earnings per share (EPS) of approximately $0.35, in conjunction with a structural margin outlook that anticipates only flat gross margin rates for fiscal 2025, raises concerns over profitability. Additional risks include legislative actions affecting optometry services, shifts in consumer preferences, and a heavy reliance on a limited number of suppliers, which could further exacerbate the company's challenges.