Wayfair (NYSE:W) is down fractionally in Monday afternoon’s trading despite seeing Morgan Stanley analysts maintain their support. Wayfair is looking pretty good, at least to Simeon Gutman, an analyst with Morgan Stanley, who kept his Overweight rating and $80 price target right where they were. Why? Several reasons sprang to mind, starting with a “cyclical recovery in home-oriented stocks.”
That’s an excellent point; as the weather warms, people will find more reasons to get outside, and once that warm turns hot, they’ll likely find reasons to get back inside and try to cool off. But the spring / early summer rise should help, and with Wayfair enjoying more market share than normal, it’s likely to get a bigger piece of that pie to itself.
New Large-Format Store
Wayfair is likely aware that it’s up for some cyclical gains right now. That might explain why it’s opening up a new large-format store in Wilmette, near Chicago. It’s part of an effort to revamp the Edens Plaza strip mall and will include many of the same kinds of things you’d see on Wayfair’s website. Plus, it will offer up an in-store restaurant, the same way that an Ikea would. What will be served there is still unclear.
Meanwhile, Wayfair is wrapping up the Big Outdoor Sale, which has been running for the last several days in a bid to give shoppers something new to pick up and augment their spaces.
Is Wayfair Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on Wayfair stock based on 14 Buys and 12 Holds assigned in the past three months, as indicated by the graphic below. After a 91.12% rally in its share price over the past year, the average W price target of $65.77 per share implies 3.92% upside potential.
