Macquarie said the growth tailwinds that have supported Lenskart over the last two quarters appear sustainable and could drive a strong earnings trajectory over the coming years.
Also read: Why Morgan Stanley bets on ONGC but downgrades its peer Oil IndiaThe brokerage expects Lenskart to deliver an EBITDA compound annual growth rate (CAGR) of more than 35% between FY26 and FY29, supported by continued revenue growth and operating leverage.
A key pillar of Macquarie’s bullish view is the company’s international business, which it said is demonstrating strong sales growth and margin potential. According to the brokerage, Lenskart’s overseas operations are currently outperforming the trajectory seen in India when measured at a comparable scale.Reflecting these favourable trends, Macquarie raised its earnings per share estimates and target price by 5%.
The brokerage believes the company’s expanding international footprint, coupled with sustained execution in its core business, positions it well for continued earnings growth.
19 analysts have coverage on Lenskart, of which 15 have a “buy” rating on the stock, three have a “hold” rating, while one has a “sell” recommendation on the stock. The consensus estimates of price targets is ₹586.2, implying a potential upside of about 16% from Tuesday’s closing price.
Among major brokerages, Macquarie and Citi have price targets of ₹600 on the stock, while Morgan Stanley has a target price of ₹576. CLSA remains the lone bear with a ‘Sell’ rating and a target of ₹437.
Shares of Lenskart Solutions are trading 0.2% higher on Wednesday at ₹504.2. The stock is up 15% so far this year and continues to trade above its IPO price of ₹402 per share.
