Wayfair Receives Strong Buy Rating as Truist Securities Raises Price Target to $70

Truist Securities's Youssef Squali raised their price target on Wayfair (NYSE: W) by 11.1% from $63 to $70 on 2024/05/03. The analyst maintained their Strong Buy rating on the stock.

Following Wayfair's solid Q1 2024 earnings report, Truist Securities remains constructive on the stock. The analyst highlighted stabilizing demand trends, positive growth in active customers and order frequency, and the company's ability to drive meaningful cost efficiencies. Despite lower Average Order Values, Truist Securities predicts that Wayfair will continue to gain market share in a tough Home Furnishing segment.

For Q1 2024, Wayfair reported a loss per share of $0.32, beating the Zacks Consensus Estimate of $(0.45) and showing significant improvement from Q1 2023's loss per share of $(1.13). The company reported revenue of $2.73 billion, slightly missing the Zacks Consensus Estimate of $2.82 billion but showing a 1.4% increase compared to Q1 2023. Adjusted EBITDA for the quarter was $75 million.

Looking ahead, Wayfair's management provided guidance for Q2 2024. They expect a gross margin of 30% to 31% and an adjusted EBITDA margin in the mid-single digits. Co-founder, Co-Chairman & CEO Niraj Shah expressed optimism about Wayfair's performance, stating that the company has been gaining market share for six consecutive quarters. He also mentioned that suppliers are introducing new products into their catalogs, indicating their enthusiasm to partner with Wayfair.

Other analysts also updated their ratings on Wayfair on May 3, 2024. Bernstein's Nikhil Devnani raised their price target from $50 to $55 and maintained a Hold rating on the stock. BMO Capital's Brian Pitz raised their price target from $57 to $61 and also maintained a Hold rating. TD Cowen's John Blackledge raised their price target from $55 to $58 and maintained a Hold rating.

According to the latest data, 66.7% of top-rated analysts currently rate Wayfair as a Strong Buy or Buy, while 33.3% see it as a Hold. No analysts recommend or strongly recommend selling the stock.

Since Wayfair's latest quarterly report on May 2, 2024, the stock price has increased by 8.4%. Year-over-year, the stock is up 103.2%. Wayfair has outpaced the S&P 500, which has only seen a 25.4% increase during the same period.

Truist Securities analyst Youssef Squali is highly regarded among Wall Street analysts. They are ranked in the top 2% out of 4,573 analysts by WallStreetZen, with an average return of 16.3% and a 58.8% win rate. Squali specializes in the Communication Services and Consumer Cyclical sectors, among others.

Wayfair Incorporated, an e-commerce company headquartered in Boston, MA, sells furniture and home goods through multiple branded retail websites. These include the main Wayfair site, Joss & Main, AllModern, Birch Lane, and Perigold. With a wide range of offerings from 11,000 global suppliers, Wayfair continues to establish itself as a prominent player in the industry.

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