Wayfair price target lowered to $40 from $62 at Gordon Haskett

Gordon Haskett analyst Chuck Grom lowered the firm’s price target on Wayfair to $40 from $62 and keeps a Hold rating on the shares following quarterly results. The firm notes that on the top-line, while Q4 sales came in close to its model – declining 4.6% year-over-year – this still represented a steep decline on both the 3-year and 4-year geometric stacks of 70 bps and 1,240 bps sequentially. Wayfair was significantly more promotional in the quarter, including the introduction of a 2nd Annual Way Day event in October, Gordon Haskett adds. Additionally, while the building blocks for an improved profitability curve remain in place via improving GPM’s and significant costs cuts, the firm notes that the Wayfair management team has remained more elusive than it would like on pinpointing the timing of such a development.