Wayfair stock price target raised to $84 from $65 at Wells Fargo

Published 05/08/2025, 10:56
© Reuters.

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.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.