National Vision is looking to a strong second half of the year, according to Bank of America. Analyst Robert Ohmes double upgraded shares to buy from underperform on Wednesday, citing "multiple signs" that the eyewear company's strategic initiatives improving results. Ohmes' new price target of $22 per share, up from $13, implies the stock might soar 41% compared to Wednesday's close. National VIsion benefited from better pricing and employee recruitment in its latest quarter, according to Ohmes. Customer traffic turned positive last quarter and appears to be continuing. Among the catalysts: "New advertising, a widening selection of $99+ eyeglass frames (including Ted Baker, GX by Gwen Stefani and a Ray Ban pilot) and the rollout of a new [customer relations management software] system that will support improved marketing," Ohmes wrote in the 7-page report. Moreover, the company is "well positioned" to withstand the effect of higher tariffs, the analyst said. National Vision guided toward a headwind of $10 million to $15 million in additional product costs for 2025. Wall Street analysts estimate National Vision's 2025 revenue will total $1.93 billion, FactSet says. "Importantly, less than 10% of EYE's [cost of goods sold] is exposed to China and pricing actions that began in 4Q have supported increased ticket without degradation in conversion or net promoter scores, implying room to mitigate tariffs," Ohmes said. —CNBC's Michael Bloom contributed to this report.
