Wayfair Rises as Piper Sandler Eagerly Awaits Earnings

Home goods retailer Wayfair (NYSE:W) might have been one of the biggest things going in the pandemic, as it brought together the combined forces of we-didn’t-close pure online shopping and we’re-not-going-anywhere attitudes from consumers. It’s been on the ropes of late, though, but things may be looking up, as the latest report from Piper Sandler analysts sent shares up over 5.7% in Monday afternoon’s trading.

Piper Sandler, via analyst Peter Keith, noted that the home furnishings industry in general is finally starting to stabilize. The demand pulled forward by COVID-19 and the lockdowns resulted in something of a drought in demand for a while, exacerbated by troubles in the supply chain. However, based on Piper Sandler’s own studies, demand is stabilizing. What’s more, Wayfair is becoming a bigger part of the retail market than ever, taking new market share and appealing to consumers.

Further, Keith sees the upcoming Wayfair Investor Day event as a potential driver for future gains. It’s not the only one, however; Wayfair also has the Five Days of Deals sale, an event which runs until 8:59am EST on August 2. With this sale—focused heavily on patio and backyard items—customers can get up to 70% off items ranging from grills to firepits. Some might believe that this sale could be too little, too late. But with at least six weeks of summer still to come—fall, remember, starts September 23 in the northern hemisphere—there’s an opportunity to replace some items that might be a bit threadbare for the early summer’s use.

Analysts are fairly eager throughout the spectrum. Currently, Wayfair stock is considered a Moderate Buy by analyst consensus. That’s thanks to 11 Buy ratings, seven Hold and three Sell. However, with an average price target of $61.71, Wayfair stock offers investors a 20.12% downside risk.

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