Bank of America Securities analyst Curtis Nagle reiterated a Hold rating on Wayfair (W – Research Report) today and set a price target of $52.00.
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Curtis Nagle has given his Hold rating due to a combination of factors affecting Wayfair’s stock performance. Although Wayfair experienced a stronger-than-expected fourth quarter, this boost may be short-lived as potential impacts from tariffs and tougher comparisons are anticipated. The improvement in the online furnishings sector, partly driven by holiday promotions and geopolitical events, suggests temporary gains rather than sustainable growth.
Additionally, while Wayfair showed some outperformance in sales, the increase in traffic and sales data may not be consistent moving forward. The analyst also notes that the consensus EBITDA projections are overly optimistic, indicating a possible overestimation by the market. Consequently, the price objective has been slightly raised to $52, reflecting adjustments in cash flow estimates, but the long-term outlook remains cautious, justifying the Hold rating.
In another report released yesterday, TD Cowen also maintained a Hold rating on the stock with a $45.00 price target.
Based on the recent corporate insider activity of 76 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of W in relation to earlier this year.