The home furnishing industry has seen the rise of bright stars from the pandemic. Wayfair Inc. W. For the first time since 2020, we aim to achieve an EBITDA above breakeven.
The online retailer’s impressive earnings trends have caught the attention of top analysts, with many companies upgrading their stock prices and respective price targets on Monday.
Read what three analysts have to say.
Click here for analyst ratings.
bank of america
BofA Global Research has upgraded the Boston-based company to a buy rating and raised its price target from $30 to $65.
Curtis Nagle In a note to investors on Monday, Wayfair’s biggest risks to its positive outlook include the possibility that recent sales momentum could wane in the coming quarters. An uncertain macroeconomic environment. Increased competition from major retailers such as Amazon and Home Depot. and continued weakness in international markets.
Wedbush
Wedbush Securities is equally bullish about the company’s future, praising its strong cost-cutting efforts and improving sales trends, which it believes will set the stage for profitable growth in 2023 and beyond.
Analyst Seth Basham Wayfair upgraded from Neutral to Outperform and raised its price target from $38 to $60.
Wayfair is projected to see sales growth in 2023 due to its favorable marketplace model and willingness to spend on advertising, Basham explained.
The company is also expected to reach break-even EBITDA in the second quarter of 2023, with potential for mid-single-digit EBITDA margins over the medium term.
JP Morgan Chase
JPMorgan Chase also sees a bright future for Wayfair, noting that the company is well positioned to capitalize on the long-term shift of the home retail industry to online.
Christopher Hoovers Upgraded Wayfair to overweight and increased price target from $35 to $63.
Wayfair remains “structurally relevant” in the home retail industry, Horvers said. The company’s ability to deliver $1.4 billion in cost savings and continue to improve monthly earnings trends in the fourth quarter positions it for success in the coming quarters and beyond. ”
Price action: Wayfair shares are trading up 22.89% at $57.50, according to Benzinga Pro data.