Wayfair price target raised to $86 from $51 at RBC Capital

RBC Capital raised the firm’s price target on Wayfair (W) to $86 from $51 and keeps a Sector Perform rating on the shares. The company posted significantly better than anticipated Q3 results with net sales up 8.1% and a 15.8% contribution margin, leading to adjusted EBITDA growing 75% y/y, and while the firm remains cautious on the overall furniture industry outlook, Wayfair’s investments are leading to share gains and continued cost discipline is improving business profitability, the analyst tells investors in a research note.