Wayfair (W – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Christopher Horvers from J.P. Morgan maintained a Buy rating on the stock and has a $50.00 price target.
Christopher Horvers has given his Buy rating due to a combination of factors including Wayfair’s strategic workforce reduction and technology replatforming. The company plans to streamline its operations by reducing its technology workforce, which is expected to enhance engineering efficiency and allow resources to be redirected towards growth initiatives. This move is anticipated to result in cost savings starting in the second half of 2025 and early 2026, which are already factored into the company’s guidance.
Additionally, Horvers is optimistic about Wayfair’s potential to gain market share in the US home furnishings sector, driven by a shift towards online retailing and Wayfair’s strong supply chain capabilities. Despite current challenges in consumer spending, the company’s commitment to expense management and its advantageous position in the market are seen as positive indicators for future earnings growth. The valuation is considered attractive, with a price target set at $50 by December 2025, reflecting confidence in Wayfair’s long-term growth prospects.
In another report released on March 7, Morgan Stanley also maintained a Buy rating on the stock with a $72.00 price target.
Based on the recent corporate insider activity of 74 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.