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Investing.com - UBS raised its price target on Wayfair (NYSE:W) to $102.00 from $91.00 on Friday, while maintaining a Buy rating on the online furniture retailer’s stock. The stock, currently trading at $82.89, has shown remarkable momentum with an 87.68% gain year-to-date, though InvestingPro analysis indicates it may be trading above its Fair Value.
The investment firm expressed optimism ahead of Wayfair’s upcoming earnings report on October 28th, projecting third-quarter sales growth in the 4-6% range, in line with consensus estimates of 4.4%. With just 11 days until earnings, InvestingPro subscribers can access 10+ additional exclusive insights and detailed financial metrics to prepare for this crucial announcement.
UBS expects this sales performance should be sufficient for Wayfair to meet or slightly exceed the consensus third-quarter EBITDA estimate of $162 million.
Looking forward, UBS believes Wayfair has maintained healthy top-line momentum recently and anticipates the company will forecast fourth-quarter sales growth in the low to mid-single digit range, similar to its second-quarter guidance and above the current consensus of 3.2%.
The firm noted Wayfair might introduce some conservatism in its outlook to account for holiday season uncertainties affecting consumer budgets, which could potentially place modest upward pressure on EBITDA estimates for the fourth quarter and 2026, while leaving room for positive surprises in the next quarter.
In other recent news, Wayfair has seen several positive developments regarding its stock price targets. Canaccord Genuity has increased its price target for Wayfair to $100, maintaining a Buy rating, citing strategic gains for the company. Similarly, Truist Securities has raised its price target to $95, based on favorable trends and U.S. revenue tracking ahead of Wall Street expectations for the third quarter of 2025. Piper Sandler continues to express confidence in Wayfair’s long-term growth potential, maintaining an Overweight rating with a $95 price target. Additionally, Jefferies has raised its price target to $102, following a new long-term equity incentive package for CEO Niraj Shah. These adjustments in price targets reflect a positive outlook from analysts on Wayfair’s future performance. Furthermore, Piper Sandler analyst Peter Keith noted that new furniture tariffs announced by President Donald Trump could benefit furniture-related companies, potentially impacting Wayfair positively. These recent developments highlight the growing confidence in Wayfair’s strategic direction and market position.
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