Wayfair stock price target raised to $80 from $40 at Truist Securities

Investing.com - Truist Securities has raised its price target on Wayfair (NYSE:W) to $80.00 from $40.00 while maintaining a Hold rating following the company’s second-quarter 2025 results. The stock, currently trading at $72.54, appears overvalued according to InvestingPro Fair Value metrics.

The home furnishings retailer, with annual revenue of $12.01 billion, delivered its strongest growth and margins since fiscal year 2021, according to Truist Securities. The results exceeded expectations despite ongoing challenges in the home furnishings segment, with gross profit margins reaching 30.27%.

Truist Securities noted that Wayfair is gaining market share through strong internal execution and improving unit economics. The firm’s analysis indicates that momentum has continued into the third quarter, supported by Truist Card Data. This momentum is reflected in the stock’s impressive 65.79% year-to-date return. InvestingPro subscribers can access 13 additional key insights about Wayfair’s performance and outlook.

The research firm highlighted that Wayfair’s marketplace model, with 21 million shoppers buying from 20,000 suppliers, positions the company to better navigate tariff changes compared to competitors in the near term.

Truist Securities believes Wayfair’s scale and improving economics should provide the company with a sustainable financial competitive advantage over the long term.

In other recent news, Wayfair’s second-quarter earnings have prompted several analysts to adjust their price targets for the company. RBC Capital raised its target to $51, citing significantly better-than-expected performance and revising its third-quarter revenue estimate to a 4% growth. Evercore ISI increased its target to $85, acknowledging structural improvements and a 6% revenue growth, excluding Germany, alongside a 6.3% adjusted EBITDA margin and $230 million in free cash flow. Raymond (NSE:RYMD) James set a new target of $90, noting Wayfair’s highest top-line growth since early 2021 and performance that exceeded expectations. Goldman Sachs also raised its target to $80, highlighting strong net revenue and adjusted EBITDA results. Additionally, Wells Fargo (NYSE:WFC) increased its target to $84, pointing to accelerating sales growth, profit upside, and market share gains. These developments reflect a positive response to Wayfair’s recent financial performance.

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