Wayfair upgraded to Buy at BofA amid accelerating share gains

BofA analyst Michael McGovern upgraded Wayfair (W) to Buy from Neutral with a price target of $130, up from $86. Wayfair is well-positioned to continue to capture share as year-over-year growth accelerated to 8% compared to flattish industry growth, says the analyst, who sees multiple catalysts driving recent share gains, including the Castlegate logistics platform, Loyalty Program improvements, and increasing Ad penetration. The firm’s raised target is based on higher estimates and a higher multiple based on an improved growth profile and strengthening incremental margins, the analyst tells investors.