Wayfair downgraded to Hold at Gordon Haskett on sales concerns

As previously reported, Gordon Haskett downgraded Wayfair to Hold from Buy with a price target of $55, down from $65, after updating the firm’s model to reflect the company’s Q2 results and Q3 guidance. The firm is lowering its FY24 revenue estimate to $11.69B from $12.05B and lowering its EPS forecast to 57c from $1.11, stating that the backdrop for consumer spending in discretionary categories remains “lethargic,” this is particularly the case for home furnishings and it is difficult to pinpoint when sales will recover. Consumer survey work suggests that demand for big ticket purchases will likely remain soft and it is “plausible that sales trends could get worse, before they get better,” the analyst tells investors.