BofA update shows where active managers are putting money
Investing.com - Wells Fargo (NYSE:WFC) raised its price target on Wayfair (NYSE:W) to $84.00 from $65.00 on Tuesday, while maintaining an Overweight rating on the online home goods retailer. The stock, currently trading at $73.48, has shown remarkable momentum with a 65% gain year-to-date, according to InvestingPro data.
The price target increase follows Wayfair’s second-quarter results, which showed accelerating sales growth and profit upside, along with impressive market share gains and positive mid-single-digit percentage quarter-to-date momentum. The company generated $12 billion in revenue over the last twelve months, maintaining a healthy gross margin of 30%.
Wells Fargo noted that despite tariff and macroeconomic obstacles, Wayfair’s initiatives, including CastleGate and advertising investments, are working effectively, with profit levers sustaining performance.
The analyst highlighted that Wayfair exceeded elevated expectations with second-quarter sales and EBITDA beats that were 470 basis points and 39% above Street estimates, respectively, showing accelerating U.S. trends with international inflection and widening share gains.
Wells Fargo also suggested that if interest rate cuts materialize, Wayfair could see additional benefits through upward earnings revisions and multiple expansion.
In other recent news, Wayfair has reported strong second-quarter results, leading several investment firms to raise their stock price targets. Mizuho (NYSE:MFG) increased its target to $88, citing a more than 12% increase in domestic EBITDA dollars and improved profitability in the U.S. market. Stifel also raised its target to $68, noting that both revenues and EBITDA exceeded expectations, with continued growth into the current quarter. Needham doubled its price target to $83, highlighting Wayfair’s better-than-expected performance and improved margins due to reduced advertising expenses.
Jefferies set a new target of $74, attributing it to ongoing market share gains and expectations of increased spending frequency by customers. BofA Securities raised its price target to $72, reflecting confidence in Wayfair’s growing logistics capabilities, which are expected to enhance market share through faster delivery and improved customer experience. These developments underscore a positive outlook among analysts for Wayfair’s financial health and operational execution.
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