What Analysts Recommend for Wayfair Stock

Rating synopsis

Of the 25 analysts covering Wayfair (W) stock, 48% recommend “buy,” 48% recommend “hold,” and 4% recommend “sell.” Their average target price for Wayfair stock is $100.76, which reflects a 17.7% downside to its July 24 price. In the past 30 days, Wayfair stock has seen just one price revision. On June 25, Canaccord Genuity raised its price target to $135 from $95.

Wayfair is a fast-growing online retailer of home furniture and goods in the United States, operating through five websites: Wayfair, Joss & Main, AllModern, Birch Lane, and Perigold. Wayfair’s strategic efforts, which include improving its merchandise assortment, investing in advertising, and deploying technology to enhance customers’ shopping experience, are driving its top line.

Wayfair is also expanding internationally, with special emphasis on Canada, the United Kingdom, and Germany. The company is looking to open an 800,000-square-foot CastleGate facility in Canada to boost its operations in the country. Based on these strategic endeavors, Wayfair’s revenue is expected to rise 42.4% in the second quarter. However, investments could drag on its margins and bottom line. Its adjusted EPS are expected to drop YoY to -$0.73 from -$0.26.

What Analysts Recommend for Wayfair Stock

Ratings for peers

Of the 34 analysts covering Home Depot (HD), 77% recommend “buy,” and 23% recommend “hold.” Their target price for HD stock is $211.79, implying a 4.9% upside to its July 24 price.

In contrast, of the 21 analysts covering RH (RH), 29% recommend “buy,” and 67% recommend “hold.” Their target price for RH stock is $147.75, implying a 7.3% upside to its July 24 price.

Of the 25 analysts covering Williams-Sonoma (WSM), 80% recommend “hold,” 16% recommend “sell,” and just 4% recommend “buy.” Their target price for WSM stock is $54.84, implying a 7.7% downside to its July 24 price.