On Nov 05, major Wall Street analysts update their ratings for $Wayfair (W.US)$, with price targets ranging from $45 to $72.
Morgan Stanley analyst Simeon Gutman maintains with a buy rating, and adjusts the target price from $90 to $72.
Citi analyst Ygal Arounian maintains with a buy rating, and adjusts the target price from $70 to $54.
Deutsche Bank analyst Lee Horowitz maintains with a buy rating, and adjusts the target price from $70 to $46.
Evercore analyst Oliver Wintermantel maintains with a buy rating, and adjusts the target price from $65 to $60.
BMO Capital analyst Brian Pitz maintains with a hold rating, and adjusts the target price from $58 to $50.
Furthermore, according to the comprehensive report, the opinions of $Wayfair (W.US)$'s main analysts recently are as follows:
Wayfair's Q3 results demonstrate the company's capacity to expand market share and maintain cash flow amidst anticipation for a resurgence in industry demand. The company is positioned to counter the notion that increased promotions would lead to gross margin compression by leveraging its relationship with suppliers.
Wayfair's recent financial results presented a mixed picture, with the third quarter performance surpassing expectations, although the fourth quarter forecast suggests more daunting challenges ahead. The overall economic backdrop continues to cast a significant shadow over Wayfair's sector, curbing its growth prospects. Despite the prevailing market conditions, there is an anticipation of the stock trading around these macro influences, with a positive long-term outlook remaining intact.
Interest rates' eventual decrease is anticipated to positively influence home-related sales. Though it's hoped that recent rate reductions are the beginning of a series, there was a note that third-quarter sales dipped 3%, surpassing the projected 1% fall. It's expected that Wayfair will prudently control its overhead expenses while awaiting a market rebound.
The firm adopts a more cautious stance as consumer response to promotions has been tepid leading up to the election. Additionally, the company's ongoing initiatives to manage its take-rate are expected to keep gross margins around the low 30% threshold through the first half of FY25. Despite this, Wayfair's strategies to stimulate demand appear to be contributing to market share gains. Moreover, enhancements to the Loyalty program are anticipated to boost the frequency of customer purchases to 3 to 8 times annually.
The most recent quarterly results for Wayfair were generally on par regarding revenue and adjusted EBITDA, but the guidance for Q4 suggested a potential decline in performance towards the end of the quarter. A more favorable outlook on the company might emerge with evidence of an enhanced overall market for their category and tangible benefits from recent efforts, such as the introduction of a new loyalty scheme and the establishment of a brick-and-mortar retail location.
Here are the latest investment ratings and price targets for $Wayfair (W.US)$ from 12 analysts:
Note:
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