Jefferies raises Wayfair stock price target to $60 on market share gains

Published 01/07/2025, 21:08
Jefferies raises Wayfair stock price target to $60 on market share gains

Investing.com - Jefferies raised its price target on Wayfair (NYSE:W) to $60.00 from $55.00 on Tuesday, while maintaining a Buy rating on the online furniture retailer’s shares. The stock currently trades at $51.97, with analyst targets ranging from $25 to $100, according to InvestingPro data.

The investment firm cited Wayfair’s recent market share gains, noting that June data marked three consecutive months of web traffic share improvements—a pattern not seen in over a year. InvestingPro data shows strong returns over both one and three months, though technical indicators suggest the stock may be entering overbought territory.

Jefferies expressed confidence in its above-consensus estimates for Wayfair, positioning its second-quarter sales growth forecast 150 basis points higher than the consensus view.

The firm also maintains a 2025 EBITDA estimate that stands 3% above the market consensus, further supporting its positive outlook on the company.

Wayfair has been consistently adding to its market share over recent quarters, with Jefferies now observing an acceleration in this trend that reinforces its bullish stance on the stock.

In other recent news, Wayfair’s first-quarter results exceeded analyst expectations, with revenue surpassing projections. This positive performance was attributed to improved margins, resulting from reduced sales, operations, technology, general, and administrative expenses due to a recent tech restructuring. Piper Sandler raised its price target for Wayfair to $61, citing improving demand in the home furnishings industry and increased confidence in the market. Meanwhile, TD Cowen initiated coverage on Wayfair with a Buy rating and a $51 price target, highlighting the company’s favorable industry fundamentals and growth prospects.

Mizuho (NYSE:MFG) maintained its Outperform rating, noting Wayfair’s new fulfillment initiative, which could provide long-term margin growth through its CastleGate logistics network. However, Loop Capital downgraded Wayfair to Sell, expressing concerns over tariffs and potential inflation, maintaining a $35 target. Needham also revised its price target down to $40 but kept a Buy rating, acknowledging Wayfair’s resilience and management’s optimistic outlook despite sector uncertainties. These developments underscore the varied perspectives among analysts regarding Wayfair’s future performance and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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