Analyst Bernie McTernan of Needham reiterated a Buy rating on Wayfair, boosting the price target to $125.00.
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Bernie McTernan has given his Buy rating due to a combination of factors, primarily driven by Wayfair’s strong third-quarter performance and the subsequent upward revision of the 2026 adjusted EBITDA estimates by 9%. The company’s recent advancements in improving its profit margins and the current valuation multiples are seen as pivotal elements that could drive future equity returns.
Furthermore, McTernan anticipates favorable macroeconomic conditions, such as the ongoing replacement cycle of goods purchased during the COVID-19 pandemic and an expected increase in housing market activity due to lower mortgage rates. Wayfair’s strategic focus on unique initiatives, including AI-driven personalization, enhancing app engagement, and programs like Wayfair Rewards and Wayfair Verified, as well as their expansion into physical retail, are also considered significant contributors to the positive outlook.
In another report released yesterday, Bank of America Securities also upgraded the stock to a Buy with a $130.00 price target.