Benzinga | Nov 15, 2021 10:52AM EST

Goldman Sachs Downgrades This Optical Retailer - Read Why

* Goldman Sachs analyst Kate McShane downgraded National Vision Holdings Inc (NASDAQ:EYE) to Neutral from Buy with a price target of $57 (suggesting 12% upside), down from $59, following the Q3 results.

* The analyst expects same-store-sales challenges from moderating average tickets, a lack of pricing power and margin pressure from wages and advertising spend to result in National Vision's valuation being range-bound in the near term.

* McShane added that the company remains an attractive long-term growth story in an industry with favorable demographics and high barriers to entry.

* The company sees FY21 adjusted EPS of $1.28 - $1.33 versus the consensus of $1.34.

* Price Action: EYE closed lower by 4.37% at $50.81 on Friday.