Canaccord encouraged despite ‘mixed’ Q4 results from Wayfair

Wayfair reported "mixed" Q4 results, with active customers coming in below expectations while net revenue and adjusted EBITDA were slightly ahead, Canaccord analyst Maria Ripps the analyst tells investors in a research note. The analyst says gross margins were better than expected, driven by lower shipping costs and strong CastleGate penetration. While the shares are under pressure as some investors may have been hoping for a more constructive revenue outlook, but Wayfair’s focus on more efficient execution and potential return to profitable growth as macro headwinds ease are encouraging, the firm contends. It keeps a Buy rating on Wayfair with a $65 price target.