Analyst Nikhil Devnani of Bernstein maintained a Hold rating on Wayfair, boosting the price target to $70.00.
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Nikhil Devnani has given his Hold rating due to a combination of factors influencing Wayfair’s current market position. The company showed a strong performance in the recent quarter, surpassing revenue expectations both domestically and internationally. This was driven by stable order volumes and a 5% increase in average order value, which indicates a positive trend despite the challenges in the broader e-commerce sector.
However, while the revenue growth and improved margins are promising, there are still uncertainties that prevent a more bullish outlook. The sustainability of mid-single-digit revenue growth and potential impacts from tariffs remain areas of concern. Additionally, although there is potential for further improvements through advertising leverage and operational efficiencies, the overall sector’s stability is not yet assured. These mixed signals justify the Hold rating as the market continues to assess Wayfair’s long-term growth prospects.
In another report released yesterday, Stifel Nicolaus also maintained a Hold rating on the stock with a $68.00 price target.