Analyst Nikhil Devnani from Bernstein maintained a Hold rating on Wayfair (W – Research Report) and decreased the price target to $35.00 from $45.00.
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Nikhil Devnani has given his Hold rating due to a combination of factors affecting Wayfair’s current and future performance. The company’s recent quarterly results showed modest revenue growth, slightly surpassing market expectations, and a positive surprise in EBITDA, indicating effective cost management and operational control. However, the ongoing concerns about tariffs and their potential impact on the supply chain and product availability pose significant uncertainties for Wayfair’s business outlook.
While Wayfair has demonstrated some resilience by diversifying its seller base and managing costs effectively, the unpredictable nature of tariffs and their implications on demand elasticity remain a concern. The company’s ability to sustain its gross margin amidst these challenges is crucial, and while there is optimism about EBITDA growth, the overall macroeconomic and tariff-related disruptions necessitate a cautious approach, justifying the Hold rating.
In another report released yesterday, TD Cowen also maintained a Hold rating on the stock with a $38.00 price target.
Based on the recent corporate insider activity of 63 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of W in relation to earlier this year.