Canaccord Genuity raises Wayfair stock price target to $100 on strategic gains

Published 01/10/2025, 12:32
Canaccord Genuity raises Wayfair stock price target to $100 on strategic gains

Investing.com - Canaccord Genuity raised its price target on Wayfair (NYSE:W) to $100.00 from $84.00 on Wednesday, while maintaining a Buy rating on the online furniture retailer’s stock. According to InvestingPro data, the stock is currently trading near its 52-week high of $91.77, suggesting strong market confidence in the $11.58 billion company.

Wayfair shares surged approximately 75% during the third quarter, despite the company facing an uncertain category environment that appears to be at a sustained low point. The stock’s high beta of 2.96 indicates significant volatility, while its impressive year-to-date return of 101.56% reflects strong investor optimism.

The firm noted that Wayfair’s strategic initiatives, including Wayfair Verified, Wayfair Rewards, physical retail expansion, and technology replatforming efforts, are helping the company gain market share against competitors.

Canaccord Genuity highlighted strong adoption of the company’s CastleGate logistics service, which reached 25% penetration in the second quarter, along with Wayfair’s increasing emphasis on Multi-Channel, a new service where CastleGate fulfills orders for suppliers beyond their Wayfair business.

The research firm views second-half 2025 expectations as reasonable, with current consensus estimates projecting low single-digit growth, while noting that Wayfair shares have rallied nearly 102% year-to-date.

In other recent news, Wayfair has been the focus of several significant developments. The company’s board of directors approved a performance stock unit grant for CEO Niraj Shah, contingent on stockholder approval of an amendment to the 2023 Incentive Award Plan. This grant could involve up to 5,000,000 shares of Wayfair’s Class A common stock, with vesting conditions based on service and performance. In response to this incentive plan, Jefferies increased its price target for Wayfair to $102 from $91 while maintaining a Buy rating. Piper Sandler also maintained its Overweight rating with a $95 target, expressing confidence in Wayfair’s long-term growth potential. Truist Securities raised its price target for Wayfair to $95, citing U.S. revenue trends that surpass Wall Street expectations for the third quarter of 2025. Additionally, Piper Sandler analyst Peter Keith noted that new furniture tariffs announced by President Donald Trump could positively impact furniture-related companies, although this was not directly linked to Wayfair. These developments reflect ongoing interest and strategic adjustments surrounding Wayfair as it navigates market conditions.

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