Wayfair upgraded at Bernstein on improving revenue growth, but long-term outlook remains

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Wayfair upgraded at Bernstein on improving revenue growth, but long-term outlook remains
Credit: © Reuters.

Bernstein analysts upgraded shares of Wayfair (NYSE: W ) to Market Perform from Underperform, with a new price target of $65, up from $60 per share in a note Friday.

They said the move to upgrade the stock was more of a tactical call, given improving revenue growth and margin commentary.

"The stock has had a strong YTD run, and we see further upside potential over the next few quarters with room for positive EBITDA revisions (2024 adj. EBITDA at $515M vs. Street at $445M)," they wrote.

"Thus, we move to the sidelines. Our long-term outlook on the business hasn't changed all that much, and our base case DCF (falls short of targets) suggests it is richly valued."

The analysts concluded that their firm wants to see more proof points on profitability before it pencils in the targets.

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