What Does Wall Street Recommend for Wayfair?



Analysts recommend “hold”

As of January 15, of the 24 analysts covering Wayfair (W) stock, 38% recommend a “buy,” and 58% have a “hold” rating. Only 4% have given “sell” ratings for Wayfair stock.

Consumer preferences are quickly shifting toward online shopping, which bodes well for online retailers. Online shopping, especially furniture, is expected to gain significant traction with continued technological advancements. Wayfair has been using augmented reality to improve customers’ shopping experience. It is also overhauling assortment and expanding overseas, which has contributed to its top-line growth.

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Given the strong revenue performance, Wayfair stock was up 12.2% in 2018. As of January 15, the stock has gained 4.2%. It last closed trading at $93.87. In January so far, we’ve seen just one change for Wayfair. On January 4, Canaccord Genuity lowered the target price to $130.00 from $150.00. At present, analysts’ 12-month average price target for Wayfair stock is $117.20, which reflects 24.9% upside to the stock price on January 15.

Ratings for peers

Of the 24 analysts covering Williams-Sonoma (WSM), 79% gave it a “hold” rating, while 17% rated it a “sell.” On January 9, RBC reduced its price target for WSM to $54.00 from $62.00. Williams-Sonoma’s mean target price is $55.50, indicating a 2.6% upside to the stock’s price on January 15.

74% of the 34 analysts covering Home Depot (HD) stock have given it a “buy” rating, and the remainder rated it a “hold.” On January 9, RBC raised its price target for HD to $196.00 from $191.00. On January 4, UBS cut its price target to $200.00 from $220.00. The 12-month average target price is $203.93, indicating a 15.6% upside.

Of the 22 analysts covering RH (RH) stock, 45% recommend a “buy,” and 50% rate it as a “hold.” On January 7, Keybanc reduced its rating on RH to “sector weight.” On January 4, UBS cut the price target to $140.00 from $150.00. The mean average price target for RH stock is $162.18, which implies 27.1% upside.


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