Aug. 14 at 8:49 PM
Bernstein upgraded Wayfair to Outperform from Market Perform and raised its price target to
$125 from
$100, citing stronger revenue growth and improving operating leverage following the company’s Q2 results. The new target implies roughly 24% upside from Wayfair’s August 13 closing price of
$101.13.
Bernstein noted that Wayfair’s U.S. business is delivering high-single-digit revenue growth despite a largely stagnant furniture market, supported by premium brands, rising shopper growth and higher order volumes. The firm sees a path to 10% revenue growth in 2027 and 2028, above the 7% market expectation, and raised its revenue estimates for both years by 8%.
The broker also expects adjusted EBITDA margins to improve by 30-40 basis points versus previous estimates, lifting its 2027 and 2028 EBITDA forecasts by 13%. Bernstein projects adjusted EBITDA of nearly
$1.1 billion in 2027 and
$1.3 billion in 2028, respectively 4% and 9% above consensus.
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