Wayfair demand trends stabilizing, says Citi

Citi likes the risk/reward on shares of Wayfair heading into the Q1 report and keeps a Buy rating on the name with a $57 price target. Intra-quarter checks indicated that while the home goods category remains under pressure, it is not getting worse, leaving Citi incrementally positive that demand should start to stabilize here, the analyst tells investors in a research note. The firm looks for stabilizing demand trends and profitability tracking to EBITDA breakeven in Q2. Wayfair has turned into a "show-me" story for the Street, but consensus estimates have more upside than downside, Citi contends.