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Piper Sandler raised its price target on Wayfair (NYSE:W) to $61.00 from $46.00 on Friday, while maintaining an Overweight rating on the online furniture retailer’s stock. The company, with a market capitalization of $6 billion and annual revenue of $11.9 billion, currently trades near InvestingPro’s Fair Value estimate.
The price target increase reflects growing confidence in the home furnishings industry backdrop, with the research firm citing encouraging data from its May Mattress Retailers Survey. The survey showed delivered sales growth of 4% mean and 5% median year-over-year, marking the second consecutive month with sales performance among the best seen in approximately three years. This optimism aligns with Wayfair’s strong recent performance, with InvestingPro data showing the stock has posted robust returns over the past three months.
Piper Sandler increased its EBITDA multiple assumption from 12x to 15x based on 2026 EBITDA projections, directly contributing to the higher price target. The firm specifically noted "improving industry demand" as a key factor supporting its more optimistic outlook for Wayfair. While current EBITDA stands at -$130 million, analysts tracked by InvestingPro expect the company to turn profitable this year, with price targets ranging from $25 to $100.
The research firm identified several potential risks to its price target, including economic conditions, competitive pressures, potential site disruptions, and Wayfair’s reliance on key top management personnel. According to InvestingPro’s comprehensive analysis, which includes 8 additional key insights available to subscribers, the company’s current ratio of 0.83 indicates short-term obligations exceed liquid assets, warranting careful monitoring.
Wayfair, which specializes in home goods and furniture sold through its e-commerce platform, has faced challenging market conditions in recent years as consumer spending patterns shifted following the pandemic-driven surge in home furnishings purchases. The company’s Financial Health Score of 2.23 (FAIR) from InvestingPro reflects these challenges, though analysts remain optimistic about its recovery potential.
In other recent news, Wayfair’s first-quarter earnings have been a focal point for analysts, with the company surpassing expectations due to improved margins and cost management. Needham noted that the company’s revenue exceeded projections, with a growth of 1.6% in the U.S. market, despite ongoing sector challenges. Evercore ISI raised its price target for Wayfair to $45, citing the company’s strong earnings performance and strategic financial maneuvers, which include refinancing its credit facility to strengthen its capital structure. Loop Capital, however, downgraded Wayfair to a Sell rating, maintaining a $35 target and expressing concerns over the uncertain tariff environment and potential inflation issues. TD Cowen initiated coverage with a Buy rating, setting a $51 price target, optimistic about Wayfair’s position in the healthcare sector. Meanwhile, Goldman Sachs maintained a Neutral rating with a $31 target, acknowledging Wayfair’s earnings outperformance but remaining cautious due to economic uncertainties. Analysts have highlighted Wayfair’s proactive cost control and market position as factors contributing to its resilience amidst a challenging environment.
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