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Investing.com - Goldman Sachs has raised its price target on Wayfair (NYSE:W) to $80.00 from $31.00 while maintaining a Neutral rating following the company’s second-quarter 2025 earnings report. The stock, currently trading at $73.48, is approaching its 52-week high of $73.79, with InvestingPro analysis indicating the shares are trading above their Fair Value.
The online furniture retailer delivered operating results that exceeded both Goldman Sachs and Street estimates for net revenue and adjusted EBITDA, with notable strength in net revenue per active customer serving as a key driver of performance. Despite the positive momentum, InvestingPro data shows the company recorded negative EBITDA of $88 million in the last twelve months, though analysts expect profitability to return this year.
Wayfair management indicated several positive trends, including no signs of consumer purchase acceleration despite U.S. tariff news, strength in the high-end market segment, confidence in supply chain adaptability despite an uncertain second half of 2025, and plans to extend its physical store presence into additional cities through 2027.
Goldman Sachs cited Wayfair’s strong year-to-date stock performance, which has risen 66% compared to the S&P 500’s 8% gain, as a factor in its decision to maintain a Neutral stance on the shares.
The investment bank adjusted its operating estimates for Wayfair while noting continued low visibility into any recovery in the end housing market as a reason for remaining "on the sidelines" despite the significant price target increase.
In other recent news, Wayfair has reported strong second-quarter earnings, which have led multiple analyst firms to raise their price targets for the company. Mizuho increased its price target to $88, highlighting a more than 12% increase in domestic EBITDA dollars and improved U.S. EBITDA margins approaching 8%. Wells Fargo also raised its target to $84, citing accelerating sales growth and profit upside. Needham more than doubled its price target to $83, noting improved execution with revenue growth accelerating to 5% year-over-year. Jefferies set its new target at $74, driven by ongoing market share gains and expectations for increased customer spending frequency. Stifel raised its target to $68, acknowledging Wayfair’s healthy revenue and EBITDA exceeding expectations. These developments reflect a positive outlook among analysts regarding Wayfair’s recent performance and future potential.
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