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Investing.com - RBC Capital has more than doubled its price target on Wayfair (NYSE:W) to $51.00 from $25.00 while maintaining a Sector Perform rating following the company’s second-quarter results. The stock, currently trading at $72.79, is near its 52-week high of $73.79, with InvestingPro data showing a remarkable 66% year-to-date return.
The online furniture retailer posted significantly better-than-expected second-quarter performance, prompting RBC Capital to adjust its third-quarter revenue estimate to 4.0% growth, up from its previous projection of a 2.3% decline, while the company’s own guidance indicates low-to-mid single-digit growth. This optimistic outlook is supported by 17 analysts revising their earnings estimates upward for the upcoming period.
RBC Capital also revised its adjusted EBITDA margin estimate for the third quarter to 5.1%, up from 3.1% previously, compared to Wayfair’s guidance of 5-6%, reflecting improved operational efficiency.
For 2025 and 2026, the investment firm now forecasts revenue growth of 2.8% and 2.0% respectively, with adjusted EBITDA margins of 5.0% and 5.1%, all representing significant improvements from prior estimates.
The new price target is based on approximately 15 times RBC’s revised 2026 adjusted EBITDA estimate of $638 million, though the firm notes it needs to see evidence of sustained top-line momentum through the current tariff environment before taking a more constructive stance on the stock. For deeper insights into Wayfair’s valuation and 13 additional key metrics, check out the comprehensive research available on InvestingPro.
In other recent news, Wayfair’s second-quarter 2025 earnings results have led to several analyst firms raising their price targets for the company. The company reported a 6% revenue growth year-over-year, excluding the impact of its exit from the German market, and achieved a 6.3% adjusted EBITDA margin along with $230 million in free cash flow. Evercore ISI increased its price target to $85, maintaining an Outperform rating, while Raymond (NSE:RYMD) James raised its target to $90, keeping a Strong Buy rating. Goldman Sachs adjusted its target to $80, noting that Wayfair’s operating results exceeded expectations, with strong net revenue per active customer. Wells Fargo (NYSE:WFC) set a new price target of $84, highlighting accelerating sales growth and market share gains. Mizuho (NYSE:MFG) also raised its target to $88, emphasizing the company’s improved U.S. EBITDA margins and profitability. These developments reflect Wayfair’s robust performance in the second quarter, as noted by the various financial institutions.
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