Wayfair (NYSE:W) Price Target Raised to $134.00

Key Points

• BNP Paribas Exane raised its Wayfair price target to $134 from $108, while keeping a Neutral rating; the new target implied 19.53% upside from the prior close.
• Wayfair beat quarterly expectations, reporting EPS of $0.93 versus $0.80 expected and revenue of $3.42 billion, up 9.7% year over year. Management forecast high-single-digit revenue growth in Q4.
• Analyst sentiment is broadly positive: MarketBeat’s consensus is Moderate Buy with an average price target of $127.30, though shares fell $11.45 to $112.11 in Thursday trading.

Wayfair (NYSE:W - Get Free Report) had its target price hoisted by stock analysts at BNP Paribas Exane from $108.00 to $134.00 in a research note issued to investors on Thursday, Benzinga reports. The firm presently has a "neutral" rating on the stock. BNP Paribas Exane's price target indicates a potential upside of 19.53% from the stock's previous close.

Several other research firms have also issued reports on W. Truist Financial upped their target price on Wayfair from $135.00 to $160.00 and gave the stock a "buy" rating in a report on Wednesday. Jefferies Financial Group restated a "hold" rating and issued a $108.00 price target on shares of Wayfair in a research note on Tuesday, August 4th. Evercore reaffirmed an "outperform" rating and set a $130.00 price target on shares of Wayfair in a research report on Wednesday, August 5th. Robert W. Baird upped their price objective on Wayfair from $116.00 to $117.00 and gave the stock a "neutral" rating in a research note on Thursday, October 8th. Finally, Zacks Research raised Wayfair from a "hold" rating to a "strong-buy" rating in a report on Tuesday. Three research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $127.30.

Wayfair Stock Performance

Wayfair stock traded down $11.45 during mid-day trading on Thursday, reaching $112.11. The company's stock had a trading volume of 1,317,466 shares, compared to its average volume of 3,372,705. Wayfair has a 12 month low of $55.60 and a 12 month high of $127.99. The business's 50 day simple moving average is $105.55 and its 200 day simple moving average is $89.17. The company has a market capitalization of $14.80 billion, a price-to-earnings ratio of -45.76, a price-to-earnings-growth ratio of 3.84 and a beta of 3.10.

Wayfair (NYSE:W - Get Free Report) last issued its quarterly earnings results on Wednesday, November 4th. The company reported $0.93 EPS for the quarter, topping the consensus estimate of $0.80 by $0.13. Wayfair had a negative net margin of 2.49% and a negative return on equity of 3.40%. The firm had revenue of $3.42 billion for the quarter, compared to analysts' expectations of $3.38 billion. During the same period in the previous year, the firm posted $0.70 EPS. The company's revenue for the quarter was up 9.7% on a year-over-year basis. As a group, sell-side analysts expect that Wayfair will post 0.97 EPS for the current year.

Insider Activity

In related news, CTO Fiona Tan sold 8,000 shares of the firm's stock in a transaction dated Tuesday, October 20th. The shares were sold at an average price of $115.00, for a total value of $920,000.00. Following the completion of the sale, the chief technology officer directly owned 196,698 shares in the company, valued at approximately $22,620,270. This trade represents a 3.91% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Niraj Shah sold 117,000 shares of Wayfair stock in a transaction dated Thursday, October 15th. The stock was sold at an average price of $111.25, for a total value of $13,016,250.00. Following the transaction, the chief executive officer owned 105,137 shares of the company's stock, valued at $11,696,491.25. The trade was a 52.67% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 677,070 shares of company stock valued at $72,236,934 in the last 90 days. 18.44% of the stock is owned by company insiders.

Institutional Trading of Wayfair

A number of hedge funds have recently made changes to their positions in W. Lido Advisors LLC raised its stake in Wayfair by 451.2% in the 3rd quarter. Lido Advisors LLC now owns 16,226 shares of the company's stock worth $1,664,000 after purchasing an additional 13,282 shares in the last quarter. AlphaCore Capital LLC bought a new stake in Wayfair in the 3rd quarter valued at about $622,000. Fulcrum Asset Management LLP bought a new stake in Wayfair in the 3rd quarter valued at about $6,092,000. Bryn Mawr Trust Advisors LLC bought a new stake in Wayfair in the 3rd quarter valued at about $226,000. Finally, Brighton Jones LLC grew its position in shares of Wayfair by 106.3% during the 3rd quarter. Brighton Jones LLC now owns 19,822 shares of the company's stock worth $2,033,000 after purchasing an additional 10,213 shares in the last quarter. 89.67% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Wayfair

Here are the key news stories impacting Wayfair this week:

• Positive Sentiment: Wayfair beat Q3 expectations with adjusted earnings of $0.93 per share and revenue of $3.42 billion, up 9.7% year over year. U.S. revenue climbed 11.4%, helping the company post its strongest growth since the pandemic and gain share in a sluggish home-furnishings market. Wayfair Q3 results
• Positive Sentiment: Management forecast high-single-digit revenue growth in Q4 and a 6%–7% adjusted EBITDA margin, supporting expectations for continued growth and improved profitability. The company also pointed to customer engagement, loyalty programs, AI initiatives and store expansion as growth drivers. Q4 outlook
• Positive Sentiment: Analyst actions added support: Wells Fargo raised its target to $140 and maintained an Overweight rating; Needham lifted its target to $145 and maintained Buy. Zacks Research upgraded W to Strong Buy, while Gordon Haskett also moved to Buy with a $160 target. Wells Fargo rating
• Neutral Sentiment: The strong operating results and analyst optimism come after a substantial share-price run, which could leave W vulnerable to profit-taking or elevated expectations.
• Negative Sentiment: International revenue declined 2.3% year over year, contrasting with U.S. growth and indicating that the recovery remains uneven across markets. Wayfair Q3 results

Wayfair Company Profile

Wayfair Inc is an e-commerce company that sells furniture, home furnishings and related products through digital platforms. Its selection includes furniture, décor, lighting, rugs, mattresses, kitchen and dining products, housewares, home improvement items, outdoor furnishings and other goods for residential and commercial spaces.

The company operates a portfolio of online brands and retail websites, including Wayfair, Joss & Main, AllModern, Birch Lane and Perigold. These brands are designed to serve different customer preferences, price points and areas of the home-furnishings market.

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