Goldman Sachs has revised its price target for Warby Parker (WRBY, Financial), decreasing it from $29 to $18, while maintaining a Buy rating on the stock. This adjustment reflects a more cautious outlook on the U.S. apparel and softlines sector amidst prevailing macroeconomic uncertainties.
The firm's economists have also adjusted their expectations for U.S. economic growth, lowering the GDP growth forecast from 2.5% in 2024 to 0.5% in 2025, based on a quarter-to-quarter analysis. They now estimate a 45% chance of a recession occurring, though this is not fully factored into their current projections.
Goldman Sachs highlights several risks that could weigh on earnings, including ongoing market volatility, geopolitical instability, and increased tariff rates. These factors contribute to the potential downside risk in the economic landscape.
