Wayfair Stock: Analysts Recommend a ‘Hold’ Rating


Aug. 3 2018, Published 12:17 p.m. ET

Rating synopsis

After Wayfair (W) posted mixed second-quarter results on August 2, most of the analysts remain on the sidelines about the stock. Of the 25 analysts covering Wayfair, 52% recommend a “hold,” 44% recommend a “hold,” and 4% recommend a “sell.”

Two analysts revised their target prices for Wayfair stock after the earnings. Canaccord Genuity increased its target price to $140.00 from $135.00. Cowen and Company raised its target price to $137.00 from $134.00. Currently, analysts’ 12-month average target price for Wayfair stock is $113.70, which reflects a 1.4% downside to the stock price as of August 2.

In comparison, out of the nine analysts covering At Home Group (HOME), 89% recommend a “buy,” while 11% recommend a “hold.” Analysts’ target price for At Home Group stock is $42.63, which reflects a 27.8% upside to the stock price as of August 2.

For RH (RH), 67% of the 21 analysts recommend a “hold,” while 29% recommend a “buy.” Analysts’ 12-month average target price for RH stock is $147.75, which reflects 11.4% upside to the stock as of August 2.

Of the 25 analysts covering Williams-Sonoma (WSM) stock, 80% recommend a “hold,” 16% recommend a “sell,” and 4% recommend a “buy.” The 12-month average target price for Williams-Sonoma stock is $54.84, which reflects a 4.9% downside as of August 2.

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What lies ahead?

Wayfair’s second-quarter revenues beat the estimates. However, the adjusted loss per share was wider than analysts’ expectations. The adjusted loss per share of $0.77 widened on a YoY basis as investment activities increased. The company is investing to expand its logistics network and deploy the latest technology to help customers make purchasing decisions. Wayfair is also diverting funds towards marketing to raise brand awareness. These investments will likely continue to impact the company’s bottom line and profitability in the near future.


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