- One of the key reasons for Warby Parking choosing a direct listing instead of an IPO was that the company did not have any immediate fund raising needs.
- I am comfortable with WRBY's long-term revenue growth target of 20%, but I think that the sales growth estimates from the lone analyst, for the company to grow by 30% are too optimistic.
- Warby Parker's valuations are relatively rich on an absolute and relative basis, implying that significant growth expectations have been baked into its share price.
- I view WRBY's shares as a Hold following its recent direct listing on the NYSE.
For further details see:
Is Warby Parker Stock A Buy, Sell, Or Hold After Direct Listing?