Wayfair initiated with a Sector Weight at KeyBanc

KeyBanc analyst Bradley Thomas initiated coverage of Wayfair with a Sector Weight rating and no price target. Wayfair, along with the furniture and home furnishings industry, significantly benefitted from a pull-forward in demand during the pandemic, but investors are increasingly focused on businesses that generate positive EBITDA and free cash flow in the current macroeconomic environment, Thomas said. With Wayfair estimated to generate negative $424M in adjusted EBITDA in 2022, and management "working diligently" to run-rate at breakeven adjusted EBITDA in 2023, he believes it is critical for Wayfair to show progress on profitability, the analyst tells investors.