Raymond James reiterates Strong Buy on Wayfair stock after solid 2Q25

Published 04/08/2025, 16:12
Raymond James reiterates Strong Buy on Wayfair stock after solid 2Q25

Investing.com - Raymond (NSE:RYMD) James has reiterated its Strong Buy rating and $55.00 price target on Wayfair (NYSE:W), currently trading at $71.58, following the company’s second-quarter 2025 earnings report released Monday. According to InvestingPro data, the stock shows significant volatility with a beta of 2.98 and is trading near its 52-week high.

Wayfair reported quarterly revenue that exceeded both Raymond James and consensus expectations, driven by accelerating sales and market share gains. The company achieved approximately 6% year-over-year revenue growth during the quarter, excluding the impact of its Germany operations. While the company is not yet profitable, with a loss per share of $2.88 over the last twelve months, InvestingPro analysis shows analysts expect profitability in 2025 with forecasted earnings of $0.60 per share.

This growth rate represents Wayfair’s strongest top-line performance since the first quarter of 2021, according to Raymond James analyst Bobby Griffin. The results align with Raymond James’ investment thesis that Wayfair can grow adjusted EBITDA while demonstrating leverage on incremental revenue growth.

Wayfair posted EBITDA margins of 6.3% for the quarter, an improvement from 3.9% in the first quarter of 2025 and 5.2% in the second quarter of 2024. This margin expansion occurred alongside the revenue growth, supporting the firm’s positive outlook.

Raymond James indicated it would provide additional commentary and updated estimates following Wayfair’s Monday conference call scheduled for 8:00 a.m. EDT, where third-quarter guidance and quarter-to-date revenue trends were expected to be discussed.

In other recent news, Wayfair Inc . reported outstanding financial results for the second quarter of 2025, significantly outperforming market expectations. The company announced an earnings per share (EPS) of $0.87, which is a notable increase from the anticipated $0.33. This represents a substantial 163.64% surprise in earnings. Additionally, Wayfair’s revenue reached $3.27 billion, surpassing the forecasted $3.12 billion. These developments highlight a strong performance for the company in this period. Analysts had projected lower figures, making the actual results particularly noteworthy. The positive earnings report reflects strong investor confidence in Wayfair’s operational strategies. There have been no recent analyst upgrades or downgrades reported for Wayfair.

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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