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Investing.com - Raymond (NSE:RYMD) James raised its price target on Wayfair (NYSE:W) to $90.00 from $55.00 on Tuesday, while maintaining a Strong Buy rating following the company’s second-quarter 2025 earnings results.
The furniture retailer reported revenue growth of approximately 6% year-over-year, excluding the impact of Germany, marking its highest top-line growth since the first quarter of 2021. Both revenue and adjusted EBITDA exceeded Raymond James and consensus expectations for the quarter.
Raymond James highlighted Wayfair’s leaner cost structure and newfound operating leverage, noting that 5% revenue growth drove 26% adjusted EBITDA growth with approximately 27% flow through. The firm also pointed to Wayfair’s marketplace model as providing flexibility from a sourcing perspective, giving it a relative advantage versus other pure play furniture retailers in the current tariff environment.
Despite challenging industry conditions with overall furniture sales down year-over-year, Raymond James observed that Wayfair is gaining market share and showed operational strength through EBITDA growth and favorable customer metrics during the quarter.
The investment firm continues to view the risk/reward setup for Wayfair as compelling, citing the company’s "right playbook" and more nimble profit and loss statement that positions it to drive meaningful EBITDA growth when category demand eventually improves.
In other recent news, Wayfair has reported strong second-quarter 2025 earnings results, prompting several analyst firms to raise their stock price targets. Goldman Sachs increased its price target to $80, highlighting that the company’s operating results exceeded expectations, with notable strength in net revenue per active customer. Wells Fargo (NYSE:WFC) also raised its target to $84, citing accelerating sales growth, profit upside, and impressive market share gains. Mizuho (NYSE:MFG) set its new target at $88, emphasizing a 12% increase in domestic EBITDA dollars and improved U.S. EBITDA margins. Stifel adjusted its target to $68, noting that Wayfair’s revenues and EBITDA exceeded expectations and showing continued growth into the current quarter. Additionally, Jefferies raised its target to $74, pointing to ongoing market share gains and the potential for increased spending frequency among customers. These developments reflect a positive outlook from analysts following Wayfair’s recent financial performance.
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