Stephens upgrades Wayfair to Overweight, triples price target

Stephens analyst Nicholas Zangler upgraded Wayfair to Overweight from Equal Weight with a price target of $105, up from $34, after the company returned to adjusted EBITDA profitability in Q2. Gross margin was an “all-time high” 31.1%, compared to the firm’s 29.7% forecast, and Wayfair guides Q3 net revenues up mid-single-digits with gross margin guided between 29.5% and 30.5%, says the analyst, who sees the inflection toward positive EBITDA being a result of improving sales trends and execution of the company’s $1.4B cost savings plan.