BofA double upgrades Wayfair to Buy on ‘significant improvement’

BofA analyst Curtis Nagle double upgraded Wayfair to Buy from Underperform with a price target of $65, up from $30. The analyst is more confident that Wayfair will achieve breakeven or better EBTIDA this year on a "significant improvement" in revenue trends and over $1B of expense reductions. The company on Friday announced it was implementing $1.4B in cost cuts and that revenue trends improved each month in Q4, the firm tells investors in a research note. Despite Friday’s rally, BofA sees room for continued multiple expansion if Wayfair turns EBITDA positive this year. The company is outperforming the industry for the first time since COVID, writes the analyst.