Deutsche Bank commenced its coverage of Wayfair (NYSE:W) on Thursday with a Buy rating and a price target of $55. Nevertheless, the e-commerce company’s shares experienced a slight decline at the time of writing.
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Indeed, analyst Lee Horowitz based his bullish stance on Wayfair’s sustained revenue growth and continued margin improvements. He told investors that the firm is not bothered by macro challenges in the Home goods industry, suggesting that Wayfair could navigate these challenges effectively.
Horowitz highlighted several factors bolstering Wayfair’s position: the easing of macro headwinds, increasing gross margins, growth in headcount, and an acceleration in revenue growth.
According to the analyst, Wayfair is well positioned to take more market share as a leader in the pure-play e-commerce market. “Share gains have improved recently as inventory positions normalize, and Wayfair is thus able to differentiate in the market based on premium selection, price, and delivery speeds,” Horowitz added.
Is Wayfair Stock a Good Buy?
With 10 Buys and four Hold recommendations, W stock has a Moderate Buy consensus rating. Further, the average Wayfair stock price target of $69.93 implies 50.97% upside potential from current levels. Meanwhile, W stock has gained 39% so far this year.
