Lenskart target price hike: Stock rises 4% on thumbs up from Morgan Stanley

Shares of Lenskart Solutions Ltd rose nearly 4% on Wednesday after global brokerage Morgan Stanley maintained its Overweight rating on Lenskart and raised its target price to Rs 718 from Rs 666. The brokerage has raised FY27 to FY30 international revenue estimates by 0 to 2 percent and international earnings by 3 to 7 percent, and rolled its model forward by two months to October 2027.

However, it kept India revenue estimates unchanged.

The scenario range

Morgan Stanley's bull case moves to Rs 1,154 from Rs 1,048, the base case to Rs 641 from Rs 600, and the bear case to Rs 304 from Rs 290.

Meanwhile, the Lenskart stock rose 3.54% to Rs 698 today against the previous close of Rs 674. Market cap of the firm rose to Rs 1.20 lakh crore.

Another brokerage MOFSL has retained its Buy rating on Lenskart and raised its target price to Rs 800 from Rs 705. The brokerage's September note attributed the company's performance primarily to strong earnings momentum and continued upgrades to consensus estimates, rather than a multiple re-rating.

MOFSL expects Lenskart's revenue, pre-IND AS Ebitda and adjusted PAT to grow at CAGRs of 27%, 46% and 59%, respectively, between FY26 and FY29. It also expects the company to expand its store network to 4,500 outlets in India by FY29, compared with its earlier estimate of 4,300 stores.

MOFSL raised its FY27-28E consolidated pre-IND AS Ebitda estimates by 4% and 8%, respectively, citing higher store additions in India and operating leverage across its Indian and international businesses. It expects pre-IND AS EBITDA margins to improve to 19.4% in India and 13.5% internationally by FY29.