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Investing.com - Needham has more than doubled its price target on Wayfair (NYSE:W) to $83.00 from $40.00 while maintaining a Buy rating following the company’s second-quarter results. The target falls within the broader analyst range of $25-$100, with the stock currently trading at $73.48, near its 52-week high. According to InvestingPro analysis, the stock appears overvalued at current levels.
The home goods e-commerce retailer reported better-than-expected quarterly performance, with revenue growth accelerating to 5% year-over-year and margins exceeding expectations due to reduced advertising expenses. The company maintains a substantial market presence with $11.85B in trailing twelve-month revenue, though profitability remains a challenge with negative earnings.
Needham noted that category trends appear to have stabilized, with Wayfair’s growth primarily driven by market share gains resulting from improved core execution and various growth initiatives including Verified, Rewards, and physical retail expansion.
The firm raised its adjusted EBITDA estimates by more than 20% and applied a higher multiple to reflect the improved performance, contributing to the substantial price target increase.
Despite the significant upward revision to estimates, Needham believes there is continued upside potential, particularly if increased housing market velocity drives category growth in 2026 and beyond.
In other recent news, Wayfair has reported a strong second quarter for 2025, significantly exceeding earnings expectations. The company posted earnings per share of $0.87, far surpassing the projected $0.33, marking a 163.64% surprise. Revenue also outperformed forecasts, reaching $3.27 billion compared to the anticipated $3.12 billion. Canaccord Genuity responded by raising its price target for Wayfair to $84, citing the company’s robust performance and maintaining a Buy rating. Similarly, Raymond (NSE:RYMD) James reiterated a Strong Buy rating with a $55 price target, noting that Wayfair’s quarterly revenue exceeded expectations due to accelerating sales and market share gains. BofA Securities also increased its price target to $72, highlighting Wayfair’s expanding logistics capabilities. Additionally, William Blair maintained an Outperform rating, pointing to potential valuation expansion and improvements in Wayfair’s financial position. These developments underscore the positive momentum Wayfair is experiencing in the market.
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