TD Cowen Maintains a Buy Rating on Warby (WRBY) After Google Partnership

On May 21, TD Cowen analyst Oliver Chen raised the price target on Warby Parker Inc. (NYSE:WRBY) from $20 to $24 while maintaining a Buy rating on the stock. The analyst raised the price target after the company announced its partnership with Alphabet Inc. (NASDAQ:GOOGL) to develop AI glasses compatible with Android and iOS.

A woman wearing a stylish pair of eyeglasses walking through a shopping center.

Warby Parker Inc. (NYSE:WRBY) is a lifestyle and eyewear company that designs, manufactures, and sells prescription and non-prescription eyewear. Earlier on May 20, the company announced its strategic partnership with Alphabet Inc. (NASDAQ:GOOGL) to develop AI-powered smart glasses designed for all-day wear.

The partnership aims to combine Warby Parker Inc.’s (NYSE:WRBY) expertise in stylish, accessible eyewear design with Google’s advanced technology ecosystem. The smart glasses will incorporate multimodal AI, which processes multiple data types simultaneously, enabling real-time contextual intelligence.

Google has committed up to $150 million to the partnership, split into $75 million for Warby Parker Inc. (NYSE:WRBY) product development and commercialization costs. Whereas the other $75 million is set as an equity investment contingent on meeting certain collaboration milestones. Analyst Chen sees this partnership as a long-term opportunity for the company to focus on innovation.

While we acknowledge the potential of WRBY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WRBY and that has 100x upside potential, check out our report about the cheapest AI stock.

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