Nomura initiates Lenskart coverage with Buy rating, 40% upside target

Nomura has initiated coverage of eyewear retailer Lenskart with a Buy rating and a target price of Rs 888, implying approximately 40% upside from current levels. The brokerage views Lenskart as having transitioned from challenger to market leader in the Indian eyewear space.

Nomura sees a long growth runway ahead, driven by store expansion plans, strong market positioning, vertical integration capabilities, and cost advantages. The brokerage also notes that potential MSCI inclusion could attract passive inflows to the stock.

The initiation signals investor confidence in Lenskart's business model and expansion trajectory in the fast-growing eyewear and optical retail sector.