By Sam Boughedda
Investing.com -- Wayfair Inc. (NYSE:W) was downgraded by Wells Fargo on Thursday, but the negative rating has been unable to hold the stock down for too long.
Shares of Wayfair slid 4.1% premarket, but the stock is now trading 1.3% higher.
Wells Fargo analyst Zachary Fadem downgraded Wayfair from Equal Weight to Underweight, reducing its price target to $100 from $110.
Fadem wrote in a research note that following recent events and analysis, he is "incrementally cautious on macro-sensitive, big ticket and housing impacted retailers."
The analyst added that "conventional wisdom suggests a recessionary scenario could render macro-sensitive stocks increasingly difficult to own under a narrative of multi-year demand pull forward, spiking mortgage rates and deteriorating consumer sentiment."
He also said the company faces waning demand visibility while describing consensus estimates as "optimistic."