Lenskart has transformed from being a challenger to a market leader, Nomura said as it initiated coverage on the shares of the eyewear retailer with a ‘Buy’ call and a target price of Rs 888 apiece, implying around 40% upside potential from the stock’s previous closing price. The stock jumped around 3% on Monday.
The international brokerage highlighted that Lenskart has a long runway of more than 10,000 planned stores, with only 27% of that potential tapped. It noted how the company holds a market share of 5%, double that of the second player, in a highly customised, fragmented and unorganised prescription eyewear category in India.
