- Jefferies raised Lenskart's target price to Rs 680 citing strong growth and margin expansion
- Citi kept a 'neutral' rating but raised target to Rs 650 on strong execution and growth potential
- Macquarie maintained 'outperform' rating, increased target to Rs 675 on premiumisation and volume growth
Lenskart Solutions Ltd.'s spectacular first quarter earnings for fiscal 2027 has brokerages swooning over it. The company has received target price hikes from Jefferies, Macquarie and Citi, while Morgan Stanley has retained its 'overweight' rating.
Here's an overview of why brokerages are so bullish on the gurgaon-based eyewear manufacturer:
Meller To Be The New Rayban? Jefferies Thinks So
Jefferies has raised Lenskart's price target to Rs 680 from Rs 600, citing strong growth and sharp margin expansion in the first quarter. The brokerage said authenticity matters more than legacy and underlined that it sees Meller becoming the Ray-ban of the future.
Jefferies highlighted how the company's top priority is market creation, and one of its top constraints in India has nothing to do with demand, but with supply.
Further, the brokerage said that Lenskart now plays at the bottom end with a fully loaded Rs 500 product, while a clear premiumisation trend is visible.
Margin improvement in international should put a key investor concern to rest, Jefferies added.
Citi Says The Current Valuations Price In Growth, But Hikes Target Regardless
Citi has maintained a 'neutral' rating on Lenskart while raising its price target to Rs 650 from Rs 600 on strong expectations and execution.
"Lenskart continues to straddle across price points to accelerate store expansion, customer acquisition and conversion," Citi said in its research note.
Growth momentum is expected to remain strong, but will be a key monitorable for the second half of the current fiscal given the high base.
The brokerage outlined that current valuations are already pricing in the growth and margin improvement trajectory.
Macquarie Likes Lower Entry Range But Also Premiumisation Trends
Macquarie has maintained an 'outperform' rating on Lenskart, while hiking the price target to Rs 675 from Rs 625.
Lenskart's Indian performance met the brokerage's expectations, but the international performance was a tad bit more attractive as it exceeded estimates.
Macquarie said that it likes the strong volume growth, ongoing premiumisation (lenses/frames), the attractive Rs 500 entry-level offering, and potential for 10k+ stores in India.
Stronger international margins drive a 4% earnings per share upgrade and 8% TP increase, the brokerage outlined.
Morgan Stanley Is Happy With Where It Is On Lenskart
MS has maintained its 'overweight' rating on the stock, with a target price of Rs 666. The brokerage remains positive because of confident management commentary, strong international performance, and rise in earnings expectations.
"Strong performance, optimistic management commentary, and rise in earnings estimates augur well for continued stock outperformance," the brokerage underscored.
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