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Investing.com - Jefferies raised its price target on Wayfair (NYSE:W) to $74.00 from $60.00 on Monday, maintaining a Buy rating on the online furniture retailer. The stock, currently trading at $73.48, has surged 47% year-to-date and is trading near its 52-week high of $68.50, according to InvestingPro data.
The investment firm cited ongoing market share gains and expectations for a flywheel effect that would drive higher spending frequency among Wayfair customers.
Jefferies highlighted Wayfair’s plans to increasingly leverage its CastleGate infrastructure to service the fulfillment needs of supplier businesses outside of Wayfair’s platform, describing this initiative as another "leg of the stool" toward double-digit EBITDA percentage over time.
The firm now forecasts that Wayfair’s calendar year 2025 EBITDA will eclipse its calendar year 2021 EBITDA, with calendar year 2027 EBITDA expected to surpass calendar year 2020 EBITDA.
Jefferies reiterated its Buy recommendation on Wayfair stock, reflecting confidence in the company’s business model and growth trajectory.
In other recent news, Wayfair has reported a strong second-quarter performance, with revenue growth of approximately 6% year-over-year, excluding its Germany operations, surpassing expectations from both Raymond (NSE:RYMD) James and consensus estimates. The company’s quarterly results have led several analysts to adjust their outlooks. Needham has more than doubled its price target for Wayfair to $83, maintaining a Buy rating, citing improved execution and better-than-expected margins due to reduced advertising expenses. Canaccord Genuity also raised its price target to $84, highlighting Wayfair’s significant profitability gains despite a flat to declining home goods market.
BofA Securities increased its price target to $72, reflecting optimism about Wayfair’s expanding CastleGate logistics, which has reached 25% penetration, promising faster delivery and improved customer experience. William Blair reiterated its Outperform rating, pointing to potential valuation expansion and balance sheet improvements. Meanwhile, Raymond James continues to hold a Strong Buy rating with a $55 price target, emphasizing the company’s market share gains. These developments indicate a positive outlook for Wayfair, driven by strategic improvements and strong financial performance.
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