Wayfair upgraded to Outperform from Neutral at Wedbush

Wedbush analyst Seth Basham upgraded Wayfair to Outperform from Neutral with a price target of $60, up from $38. The company’s "very aggressive" cost-cutting actions announced Friday, combined with improving sales trends and customer unit economics, set the stage for profitable growth in 2023 and beyond, the analyst tells investors in a research note. The firm believes Wayfair’s latest round of savings "will go a long way" in better aligning its cost base with current and forecasted demand levels and higher levels of advertising as it seeks to drive demand during a period of lower direct traffic levels. The analyst says the retailer’s long-term growth potential is well above the market given the "highly fragmented industry." This note corrects the price target.