Wayfair downgraded to Neutral at BofA after ‘weak’ Q2 report

As previously reported, BofA downgraded Wayfair to Neutral from Buy with a price target of $58, down from $85. While still thinking that Wayfair is primed for strong earnings leverage when furnishings return to growth, the company’s “weak” Q2 results and Q3 guidance “pushes that thesis more into ’25,” the analyst tells investors in a post-earnings note. The firm also notes that while Wayfair is still comping strong market share gains and its topline is trending above the industry, the bank’s aggregated credit and debit card data indicates performance is narrowing despite pricing initiatives.